Hedge Fund Fraudster Balboa Convicted

Dec 19 2013 | 3:40am ET

Former hedge fund manager Michael Balboa did decidedly worse during his second time before a jury than his first.

Balboa was convicted of defrauding investors in his Millennium Global Investments hedge fund, five months after the jury in his first trial were unable to reach a verdict. This time, it took jurors just four hours to agree that Balboa was guilty of manipulating the value of Nigerian debt held by his hedge fund, which collapsed in 2008, costing investors $1 billion. Prosecutors alleged he and two brokers inflated the bonds' value, and then hid those valuations from Millennium's auditor while simultaneously trumpeting them to clients.

Balboa faces up to 20 years in prison when he is sentenced. He will remain under home confinement until then.

According to prosecutors, Balboa's fraud enabled Millennium to collect $6.5 million in fees it was not entitled to.


In Depth

Q&A: Sancus Capital And The Disruption Of The CLO Market

Oct 5 2017 | 6:28pm ET

Traditional collateralized loan obligation (CLO) funds in the U.S. market can offer...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Finding Success as Alternatives Converge

Oct 9 2017 | 4:00pm ET

Rising interest among institutional investors over the past several years has led...