Down But Not Out: From Hedge Funds to Pizza Delivery
Ken Karpman went from a $750,000 salary to delivering pizzas for $7.29 an hour.
March 19, 2009— -- For the first 45 years of Ken Karpman's life, everything was close to perfect.
He graduated from UCLA with a bachelor's degree and M.B.A., then got a high-paying job as an institutional equity sales trader. He married his dream girl, had two children and traveled the world on expensive vacations.
Over the span of Karpman's impressive 20-year career as a trader, he climbed the company ladder, reaching a salary of $750,000 a year.
"Life was good, we were making a lot of money -- and why wouldn't this just continue on?" Karpman said.
From all appearances, Ken and Stephanie Karpman were living the American dream in Tampa, Fla., nestled in their 4,000-square-foot home that sits on a golf course. "I had no idea what anything cost in a store," he said. "I'd just put it in the cart and buy."
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Karpman was so confident in his good fortune and the strong economy that he left his job in 2005 to start his own hedge fund. To pay for the new business and their standard of living, Karpman quickly burned through $500,000 in savings and, like so many Americans, took a line of credit against his house.
But in the reversal of fortune that followed, Karpman was unable to attract investors and was forced to dissolve his hedge fund. He found himself jobless in a job market that had collapsed.
In the past, Karpman had found it easy to get a job. It wasn't so this time around.
"When I used to go into a job interview, I probably came across as a jerk because I was like interviewing him to see whether this firm was worthy of me," he said. "Now it's kind of like you almost feel like you're coming in with your hat in your hand."
