Hedge Fund Manager Pleads Guilty In Conn.

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.


In Depth

The Benefits Of Private Debt Investing

May 7 2015 | 10:43am ET

Jeffrey Haas is chief operating officer of Old Hill Partners Inc., an SEC-registered...

Lifestyle

Yale Receives $150 Million Gift from Blackstone’s Schwarzman

May 12 2015 | 12:10am ET

Yale University announced it has received a $150 million gift from Blackstone Group...

Guest Contributor

How To Generate 6% Yield In A Volatile World

May 22 2015 | 6:41am ET

Private credit comes in many different flavors, all with the common themes of over...

 

Editor's Note