SEC Recovers $230M From Hedge Fund Ponzi Scheme

Jun 28 2011 | 4:51pm ET

The Securities and Exchange Commission has secured nearly $230 million for the victims of Francisco Illarramendi's hedge fund fraud.

The regulator said today that it recovered the $229.4 million from an offshore fund held by Highview Point Partners, one of Illarramendi's two hedge funds. Illarramendi pleaded guilty to running a $540 million Ponzi scheme in March.

"We're pleased with the return of the money to the U.S. and believe it will help preserve these assets for the benefit of defrauded investors," David Bergers, head of the SEC's Boston office, said.

The assets were returned to the U.S. last week and will be held by the SEC until its lawsuit against Illarramendi is resolved.


In Depth

Electronifie: Better Bond Trading

May 11 2016 | 3:03pm ET

Technology has revolutionized countless aspects of investing and trading, but the...

Lifestyle

From Modern Trader: Stephen Curry is a Black Swan

May 18 2016 | 7:43pm ET

What do the rise of the Internet, the sinking of the Titanic, 9/11, and Stephen...

Guest Contributor

LendingClub and the Question of Internal Hedge Funds

May 19 2016 | 8:42pm ET

Peer-to-peer lending platform LendingClub Corp. has been in the news since the firm...