Saturday, 27 December 2014
Last updated 2 days 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.
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.