Hedge Fund Fraudsters Vilar, Tanaka Sent To Prison

Feb 12 2010 | 5:34am ET

A pair of convicted hedge fund fraudsters has been sentenced to prison for a scam that allegedly cost investors $40 million.

Alberto Vilar was sentenced to nine years in prison, and Gary Tanaka five years. The two were convicted last year of defrauding investors in their technology hedge fund shop, Amerindo Investment Advisors.

Vilar, who had faced up to 22 years in prison, was also ordered to pay a $25,000 fine and $21.9 million in restitution. He was sentenced to three years probation after the end of his prison term.

According to the Securities and Exchange Commission, Vilar and Tanaka defrauded numerous investors in two Panamanian hedge funds, Amerindo Techology Growth Fund and ATGF II. They were also accused of misappropriating funds from the Amerindo Venture Fund.

But Vilar denied doing much wrong.

“I deeply regret any inconvenience that our 14,000 clients might have suffered,” he told the court. “Fortunately there were only five victims. I’m 95% confident that they will be paid.”


In Depth

Exotic Assets: Investing In Rare Violins

Jan 17 2017 | 4:43pm ET

By definition, alternative investments include exotic assets far beyond your typical...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

The Trump Administration: What It Could Mean for Carried Interest

Jan 19 2017 | 5:25pm ET

The arrival of the Trump administration brings the potential for a repeal of the...

 

From the current issue of

Often seen as a passion project, or part of a philanthropic venture, rare and fine stringed instruments offer an exciting option to diversify one’s investment portfolio while providing an opportunity for an exceptional long-term investment.