UPDATE: Portus Founder Gets Two Years, Is Cooperating

Nov 20 2007 | 7:28am ET

Michael Mendelson, the co-founder of collapsed Canadian hedge fund Portus Alternative Asset Management, was sentenced to two years in prison yesterday after pleading guilty to one count of fraud. He has also agreed to cooperate with authorities, a potentially ominous sign for his co-founder, Boaz Manor, who pleaded not guilty to the charges last week.

In exchange for the plea, prosecutors dropped the remaining 11 fraud and obstruction of justice charges, and the Ontario Securities Commission dropped its criminal charges against him. He still faces OSC regulatory action.

In a statement of fact filed with the court, Mendelson said he and Manor, who returned to Canada last week after two years on the run in Israel, “talked about decision made by the Portus companies,” though Mendelson claims he “did not always know all the details.” He also admitted that “members of the public were induced to invest on the basis of dishonest representations.” He said C$106 million was misappropriated, by agreement between the co-founders.

Manor’s lawyer said that he was not consulted about the plea deal, the Globe and Mail reports.


In Depth

Hedge Funds Take Interest In ‘Soft Deposits’

Nov 19 2014 | 11:56am ET

New York-based Winchester Equities, headed by Avi Benamu and Jack Hazan, funds soft...

Lifestyle

Cohen Buys $101 Million Sculpture

Nov 12 2014 | 9:17am ET

Steven Cohen was the sole bidder for a rare Alberto Giacometti sculpture at Sotheby...

Guest Contributor

Why The Big Money Is Going To Europe

Nov 14 2014 | 6:03am ET

Peer-to-peer lending was invented with the individual investor in mind. But despite...

 

Sponsored Content

    For Hedge Funds, Mastering Data Is Key To Success

    Nov 4 2014 | 9:45am ET

    Data management is important to every business, but for hedge funds, it is critical. FINalternatives recently asked Peter Sanchez, CEO of Northern Trust Hedge Fund Services, how fund managers can deal with the demands of managing data while at the same time remain transparent and abide by operational best practices. Read more…

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

November 2014 Cover

Building a better market

Reg NMS created a huge bifurcation in equity markets and while much of what has followed has been positive, in terms of lower fees and greater liquidity, many traders would like to see the market come...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.