Sunday, 25 January 2015
Last updated 2 days ago
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.
Jan 23 2015 | 1:00pm ET
In our new section, FINtech Focus, we will profile one of these firms each week. While fintech is a broad category, we will be focusing on firms that specifically cater to the alternative investment industry. Read more…