Thursday, 26 May 2016
Last updated 3 hours ago
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.