Illarramendi's Father Wants Nuclear Co. Owned By Son's Hedge Fund

Sep 21 2011 | 12:51pm ET

The father of admitted hedge fund fraudster Francisco Illarramendi wants the chance to buy a nuclear power company that his son's firm had controlled.

Ramon Illarramendi has asked a court to give him more time to prepare a bid for NuScale Power, a company that develops small modular light-water reactors, Dow Jones Newswires reports. The court-appointed receiver in the Illarramendi case, John Carney, is near a deal to sell the Oregon-based company to a Fluor Corp. subsidiary.

While the elder Illarramendi has not been accused of any wrongdoing in his son's $540 million Ponzi scheme, it was his interest in NuScale that led the younger Illarramendi to spend $25 million of one of his hedge fund's assets on the stake in NuScale. And, in an act of filial piety, Francisco Illarramendi appointed his father to NuScale's board.

Ramon Illarramendi, a former Venezuelan representative to the Organization of Petroleum Exporting Countries and a former ambassador of that country to several Caribbean countries, claims in a motion that the Fluor deal is not a good one for the Michael Kenwood Group and Highview Point Partners estates—his son's victims.

Carney has asked the court to junk Illarramendi's motion and another opposing the sale of NuScale.

Francisco Illarramendi pleaded guilty in March to charges that he misappropriated more than $50 million. He admitted that he engaged a pair of Venezuelans to provide a bogus letter from an accountant in that country verifying the existence of $275 million in imaginary assets. Illarramendi, who has been barred from the securities industry by the Securities and Exchange Commission, faces up to 70 years in prison.


In Depth

Q&A: Brevan Howard’s Charlotte Valeur Talks Strategy

Sep 18 2014 | 11:18am ET

Charlotte Valeur chairs the board of Brevan Howard Credit Catalysts, an LSE listed...

Lifestyle

Hedgies Rock Out For Children's Charity

Sep 15 2014 | 8:40am ET

It's that time of year again—when hedgies trade in their spreadsheets for guitars...

Guest Contributor

Volkered: How Financial Sector Reforms are Creating Opportunities for Hedge Funds

Sep 16 2014 | 11:28am ET

New regulations have dramatically curtailed proprietary trading activity in investment...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

September 2014 Cover

The London Whale: Rogue risk management

Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.

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.