Former Gottex Bookkeeper Charged With $3.4M Embezzlement Scheme

Jun 28 2016 | 11:30pm ET

A former accountant for Swiss multi-asset hedge fund manager Gottex Fund Management has been accused of stealing almost $3.4 million from the firm between April 2011 and November of last year.

Gary Tiffany was arrested on Monday and criminally charged in Boston with bank fraud, wire fraud and engaging in illegal monetary transactions, according to Reuters. Gottex was not identified in the complaint, but the news outlet reportedly found regulatory and other records showing Gottex employed Tiffany. 

In the complaint, prosecutors described how Tiffany, who joined the firm in June 2010 as an accounting associate, acted as the office manager for Gottex’s New York and Boston offices and was its main bookkeeper. From April 2011 through November 2015, the complaint alleges Tiffany obtained a total of more than $3.38 million from the company by wiring funds from its accounts to his personal accounts as well as forging checks from the company’s accounts payable to himself. 

He allegedly concealed the scheme by making false entries in the company's accounting system and by manipulating its bank statements to remove references to wire transfers he made, according to the complaint. The scheme was only uncovered when Tiffany was let go as part of a downsizing in late 2015 and the firm's accounts were reviewed.

If convicted, Tiffany faces a potential sentence of no greater than 30 years in prison for the bank fraud charge, the most serious of the three counts. 

The case is U.S. v. Tiffany, U.S. District Court, District of Massachusetts, No. 16-mj-01055.

Founded in 1992 and headquartered in Nyon, Switzerland, Gottex manages approximately $7.4 billion in assets deployed across a wide range of multi-manager alternative investment solutions and related advisory and risk management services, including liquid and regulated multi-asset investment products, multi-manager alternative solutions, sector-specific single investor vehicles, and liquid alternative investment programs.

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