Wednesday, 4 March 2015
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Nov 10 2010 | 4:06am ET
A Connecticut hedge fund fraudster faces up to 60 years in prison after pleading guilty to defrauding investors of $2 million.
Carlos Garcia lied about almost everything at his Paramount Equity Partners. He sent his 10 or more victims phony account statements and other documents and made Ponzi scheme-payments to some investors. He spent much of the rest of the money he raised to pay personal expenses.
Among the false documents he sent to investors between 2002 and 2009 were dummied Internal Revenue Service forms, leading victims to pay taxes on returns that never existed, prosecutors say. The move was especially ironic, because prosecutors say Garcia himself didn't both to pay taxes from 2005 through 2008.
Garcia pleaded guilty to mail fraud, wire fraud and tax evasion. He is set to be sentenced on Jan. 25, and will be liable for up to $4 million in fines as well as restitution and tax resolution orders.
Jan 23 2015 | 1:00pm ET
In our new section, FINtech Focus, we will profile one of these firms each week. While fintech is a broad category, we will be focusing on firms that specifically cater to the alternative investment industry. Read more…