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

Financial Industry Blockchain Consortium R3 To Open-Source Platform Code

Oct 20 2016 | 9:03pm ET

Bitcoin's blockchain technology has spawned a flurry of activity among fintech startups...


U.S. Trust's Beard: The Rapid Growth of the Art Lending Industry

Oct 7 2016 | 10:55pm ET

Alternative investment managers have emerged as some of the most significant art...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...