Tuesday, 21 October 2014
Last updated 3 hours ago
Mar 9 2011 | 12:37pm ET
On the same day he pleaded guilty to defrauding investors in his hedge fund, Francisco Illarramendi got some more good news: The Securities and Exchange Commission filed new charges against him.
Illarramendi, who faces up to 70 years in prison on the wire fraud, securities fraud, investment adviser fraud and conspiracy fraud convictions, now faces civil allegations that he ran a Ponzi scheme totaling in the hundreds of millions of dollars.
The SEC, which in January sued Illarramendi and his Michael Kenwood Group for allegedly misappropriating $53 million in investor assets, accuses Illarramendi of misleading investors about the value of his hedge funds. The Connecticut man claimed to manage $540 million, but when the SEC began looking into him and the funds, he allegedly had two Venezuelan men doctor up a letter from an accountant attesting to the existence of $275 million that did not, in fact, exist.
"Illarramendi knew the SEC was on to his scheme and compounded his fraud by attempting to mislead the Commission's staff," David Bergers, head of the SEC's Boston office, said.
Prosecutors have charged the two Venezuelans, Juan Carlos Guillen Zerpa and Juan Carlos Horna Napolitano, with conspiracy to obstruct an SEC probe.
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 ...