Saturday, 20 September 2014
Last updated 16 hours ago
Aug 13 2012 | 12:35pm ET
Hedge fund fraudster Francisco Illarramendi will remain out of jail—for the next two-and-a-half months, anyway.
A federal judge in Connecticut refused to revoke Illarramendi's bail, which keeps him under house arrest, on Friday. Prosecutors had sought to have the Michael Kenwood Group and Highview Point Partners founder thrown in jail after he failed to disclose a tax refund. Illarramendi's assets are currently frozen, but he used some of the more than $600,000 tax refund to pay off a lien on a luxury car and to pay his lawyers.
Illarramendi pleaded guilty in March to running a $540 million fraud, one of whose biggest victims was the pension fund for employees of Venezuela's state-owned oil company. He faces up to 70 years in prison when he is sentenced on Oct. 30.
U.S. District Judge Stefan Underhill told prosecutors that the only issue before him was whether Illarramendi was a flight risk, a risk that he adjudged to be "extremely small." But he had harsh words—and a tighter curfew—for Illarramendi, as well.
The judge called Illarramendi's actions "unfortunate, ill-advised and frankly potentially criminal," and said they may push him to sentence the fraudster to more time in prison.
"If you want to go to prison for a really long time, just hop on a plane and we can accommodate you," Underhill warned.
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…
Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.