Tuesday, 26 July 2016
Last updated 11 min ago
Jan 7 2010 | 2:07am ET
A Connecticut hedge fund manager has pleaded guilty to lying to investors about the size of his funds and their performance.
Francesco Rusciano waived indictment yesterday at New Haven federal court. The 28-year-old faces up to 20 years in prison when he is sentenced in April.
According to the Securities and Exchange Commission, Rusciano forged brokerage statements to overstate the value of his Ponta Negra Group hedge funds, claiming that Ponta Negra Fund I’s account had more than $43 million in it, when in fact it had less than $3 million. He is also charged with lying about the fund’s performance.
The hedge fund fraudster allegedly never told his investors or potential investors that he had been forced to resign from UBS Securities for falsifying reports, or that he was under investigation by the Federal Reserve for allegedly scheming to defraud UBS, and performing illegal trading and banking practices.