Man Gets 14 Months In Hedge Fund Fraud Case

Jan 31 2012 | 12:57pm ET

A Venezuelan living in Florida has been sentenced to 14 months in prison for his role in a hedge fund fraud that cost that country's state-owned oil company's pension fund hundreds of millions of dollars.

Juan Carlos Horna Napolitano pleaded guilty last year to conspiracy to obstruct a Securities and Exchange Commission investigation. According to prosecutors, Horna and another man, accountant Juan Carlos Guillen Zerpa, created a bogus letter verifying $275 million in imaginary assets at a hedge fund run by Francisco Illarramendi. Illarramendi admitted to paying the men more than $3 million for the letter.

Guillen was also sentenced to 14 months in prison. Illarramendi, who pleaded guilty to running a Ponzi scheme at his Michael Kenwood Group and Highview Point Partners hedge funds, has not yet been sentenced, but faces up to 70 years in prison when he is.

In addition to the jail time, Horna was ordered to forfeit $935,000.


In Depth

GSAM's Papagiannis: Liquid Alternatives For The Long Run

Apr 21 2017 | 8:44pm ET

Interest in liquid alternatives cooled a bit last year amid a broad shift in investor...

Lifestyle

Aston Martin Returns To Debt Market As DB11 Drives Turnaround

Mar 31 2017 | 5:21pm ET

James Bond’s preferred carmaker is returning to the public debt markets for the...

Guest Contributor

Debunking Conventional Investment Wisdom (Part II)

Apr 17 2017 | 5:56pm ET

The alternative investment industry is currently replete with buzzwords around data...

 

From the current issue of