Accountant Admits To Hedge Fund Fraud Cover-Up

May 5 2011 | 11:17am ET

One of the two alleged co-conspirators of hedge fund fraudster Francisco Illarramendi has pleaded guilty in the case.

Juan Carlos Guillen Zerpa, a Venezuelan accountant, admitted to falsifying documents to help Illarramendi cover up the Ponzi scheme he ran at his $540 million MK Capital Management. According to prosecutors, Zerpa and Juan Carlos Horna Napolitano, who has not pleaded guilty, produced a bogus letter from an accountant in Venezuela verifying $275 million in imaginary assets.

Illarramendi allegedly paid the two men more than $3 million for the letter. Illarramendi pleaded guilty in March.

Guillen faces up to 20 years in prison; prosecutors agreed not to pursue further charges as part of a plea agreement. He was released until his sentencing and will live under house arrest in Miami until then.


In Depth

Q&A: Neil Azous Talks Global Macro Investing

Nov 24 2014 | 12:41pm ET

Neil Azous is the founder and managing member of Rareview Macro, an advisory firm...

Lifestyle

Scene Last Night: Clinton, Schwarzman, Corzine, Neidich, Diamond

Nov 25 2014 | 5:52pm ET

Steve Schwarzman had a granddaughter yesterday morning. Last night he sat one table...

Guest Contributor

Why The Big Money Is Going To Europe

Nov 14 2014 | 6:03am ET

Peer-to-peer lending was invented with the individual investor in mind. But despite...

 

Sponsored Content

    For Hedge Funds, Mastering Data Is Key To Success

    Nov 4 2014 | 9:45am ET

    Data management is important to every business, but for hedge funds, it is critical. FINalternatives recently asked Peter Sanchez, CEO of Northern Trust Hedge Fund Services, how fund managers can deal with the demands of managing data while at the same time remain transparent and abide by operational best practices. Read more…

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

November 2014 Cover

Building a better market

Reg NMS created a huge bifurcation in equity markets and while much of what has followed has been positive, in terms of lower fees and greater liquidity, many traders would like to see the market come...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.