A federal jury has failed to reach a verdict in the fraud case against a former hedge fund manager.
U.S. District Judge Paul Crotty in New York declared a mistrial after jurors spent four days deliberating Michael Balboa’s fate. “If you can’t reach a verdict unanimously, that’s a decision we have to recognize,” the judge said.
Balboa, who worked at London-based Millennium Global Investments, was accused of misleading investors about the hedge fund’s investment in illiquid bonds. Prosecutors said he and two brokers inflated the bond’s value, and then hid those valuations from Millennium’s auditor while trumpeting them to clients.
Millennium collapsed in 2008, costing investors some $1 billion.
The trial lasted about three weeks. Balboa’s lawyer said he expects his client will be retried in the fall.