Monday, 29 August 2016
Last updated 2 days ago
Dec 19 2013 | 2:40am 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.