Venezuelan Accountant Sentenced In Conn. Ponzi Case

Dec 15 2011 | 9:39am ET

Juan Carlos Guillen Zerpa, a Venezuelan accountant, has been sentenced to 14 months in prison for trying to hinder an investigation into a Connecticut hedge fund manager accused of running a Ponzi scheme.

Guillen was sentenced by U.S. District Judge Stefan R. Underhill on December 14 in federal court in Bridgeport, Conn., for lying to the U.S. Securities and Exchange Commission, reports Bloomberg.

Francisco Illarramendi, majority owner of Michael Kenwood Group, 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 SEC, faces up to 70 years in prison.

Guillen signed an asset-verification letter falsely affirming that Illarramendi’s funds had $275 million in loans to Venezuelan companies. In court documents, prosecutors wrote that the accountant sold “his title for an expected payday of $1 million in exchange for his obstruction of justice and false statements to a federal agency about the existence of hundreds of millions of dollars of fraudulent assets.”


In Depth

Q&A: Star Mountain's Brett Hickey On Investing In 'The Growth Engine Of America'

Sep 22 2017 | 5:06pm ET

Lower middle-market companies form the economic fabric of the nation, but they can...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Don’t Overlook These 6 Hybrid Cloud Concerns

Sep 14 2017 | 6:27pm ET

Cloud-based technology solutions have made tremendous inroads into the alternative...

 

From the current issue of

With NFL season on the horizon, it’s time to take a look at our Fantasy Football value picks. Last year, we nailed it on Drew Brees, Jordan Howard, Frank Gore and Dwayne Allen. We missed pretty badly on Duke Johnson, Demaryius Thomas, Mohammed Sanu and Eli Manning.