Tuesday, 21 October 2014
Last updated 4 hours ago
Mar 8 2011 | 1:46pm ET
Federal prosecutors yesterday won a hedge fund manager's guilty pleas to fraud charges.
No, not that hedge fund manager.
Francisco Illarramendi pleaded guilty to wire fraud, securities fraud, investment adviser fraud and conspiracy to obstruct justice in Bridgeport, Conn., federal court, U.S. Attorney David Fein said. Fein added that he has charged two alleged co-conspirators, Juan Carlos Guillen Zerpa and Juan Carlos Horna Napolitano, with conspiracy to obstruct a Securities and Exchange Commission probe into Illarramendi's Michael Kenwood Group hedge fund.
Both men were arrested yesterday and are being held without bail. According to Fein, the two men, both Venezuelans, provided a bogus letter from an accountant in that country verifying $275 million in imaginary assets. Illarramendia allegedly paid them more than $3 million for the letter.
According to prosecutors, Illarramendi ran a Ponzi scheme through his $540 million Short Term Liquidity Fund beginning in February 2006. He also allegedly stole some $53 million for personal expenses and for other businesses he controlled.
"We believe this case represents the largest white-collar prosecution ever brought by this office," Fein said in a statement.
Illarramendi was sued by the SEC in January.
Illarramendi faces up to 70 years in prison. His alleged co-conspirators face 25 years each.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...