Friday, 29 August 2014
Last updated 5 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.
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...