Hedge fund fraudster Carlos Garcia was sentenced to more than five years in prison yesterday for ripping investors off to the tune of $2 million.
Garcia pleaded guilty in November to lying to investors in his Connecticut-based Paramount Equity Partners. Prosecutors said Garcia sent phony account statements to investors, including fake tax documents, causing victims to pay tax on returns that were themselves fake. Garcia allegedly spent the money Paramount raised on Ponzi scheme payments or on himself.
He also pleaded guilty to tax evasion, admitting that he didn't pay any between 2005 and 2008.
Garcia, of Guildford, Conn., was also ordered to pay $2.06 million in restitution and to resolve his $38,000 tax debt with the Internal Revenue Service.
"This sentence should serve as a warning to any individual who intends to operate an investment fraud scheme," U.S. Attorney David Fein said.