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.

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Editor's Note

    Oct 21 2015 | 10:41am ET

    One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…