Mistrial In Hedge Fund Fraud Case

Jul 3 2013 | 2:33am ET

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.


In Depth

Q&A: Reg A+ Will Transform the Alternative Asset Landscape

Jul 7 2015 | 4:03pm ET

In addition to easing capital formation for small companies, Regulation A+ has enormous...

Lifestyle

Fiat Chrysler Files Paperwork For Ferrari IPO

Jul 23 2015 | 5:05pm ET

Italian sportscar maker Ferrari has taken a step closer to a stock market listing...

Guest Contributor

Lifting of Foreign Ownership Limits Signals Sea Change in Vietnam's Capital Markets

Jul 28 2015 | 3:01pm ET

The lifting of restrictions on foreign ownership limits in Vietnam later this year...

 

Editor's Note