A securities broker from Studio City pleaded guilty today to conspiring to bilk about 40 hedge fund investors out of at least $2.5 million, officials said. Justin Paperny, 31, admitted he and business partner Keith Gilabert misled investors in Valencia-based Capital Management Group. Paperny told managers and supervisors of GLT Venture Fund – a hedge fund that is not as heavily regulated as mutual funds – that the investment was not performing as well as portrayed, while getting kickbacks from Gilabert, officials said. Paperny pleaded guilty to conspiracy to commit mail fraud, wire fraud and securities fraud. He also agreed to cooperate with authorities in an ongoing investigation of Capital Management and its GLT Venture Fund. 160Want local news?Sign up for the Localist and stay informed Something went wrong. Please try again.subscribeCongratulations! You’re all set! He faces five years in federal prison when he is sentenced July 30, officials said. Gilabert pleaded guilty last year to conspiracy, and is scheduled to be sentenced on July 23.