Prosecutors Go After Fraudster’s Tax Refund

Jul 1 2013 | 1:22am ET

Federal prosecutors are seeking a convicted hedge fund fraudster’s $2 million tax refund.

The lawyers moved to force Francisco Illarramendi and his wife to turn over the refund check, to be put in escrow pending his sentence. Illarramendi has been in prison since January, following his guilty plea to defrauding investors in his Michael Kenwood Group and Highview Point Partners hedge funds of $540 million.

Illarramendi faces up to 70 years in prison, as well as an “enormous mandatory restitution” and fines, at his September sentencing, prosecutors said. Illarramendi’s assets have been frozen.

Illarremendi’s lawyer is not objecting to the government’s push to take the check, but his wife’s lawyer plans to argue that some of the money should pay her living expenses.

It is the second time prosecutors have gone after Illarramendi over a tax refund; they rapped him last year over a $600,000 payment from the state that he allegedly failed to disclose, and allegedly used to pay off a lien on a luxury car and his lawyers.

“It would be prudent for the court to ensure there is not a repeat of Mr. Illarramendi’s misuse of funds,” the prosecutors wrote.


In Depth

Israeli Hedge Fund Harnesses Big Data

Jul 28 2014 | 8:10am ET

Apica Green is a multi-million dollar Israeli hedge fund that is based in Tel Aviv...

Lifestyle

David Yarrow On Growing His Hedge Fund And Shooting The Animals And People Of Africa - As A Photographer

Jul 23 2014 | 6:44am ET

While he’s always been a photographer, recent expeditions to Iceland, Ethiopia...

Guest Contributor

Compelling Opportunities In The Alternatives Space

Jul 29 2014 | 9:33am ET

In an environment where many asset classes seem expensive by historical standards...

 

Sponsored Content

    Northern Trust Helps Hedge Funds Navigate Derivatives Regulations

    Jul 8 2014 | 10:48am ET

    The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…

Publisher's Note