Thursday, 28 May 2015
Last updated 7 hours ago
Sep 4 2008 | 1:11pm ET
In matters of hedge fund fraud, the Marinos kept things in the family.
Matthew Marino, the brother of convicted Bayou Group fraudster Daniel Marino, pleaded guilty yesterday to charges that he helped cover up the $450 million fraud perpetrated against Bayou’s clients. The U.S. Attorney’s Office for the Southern District of New York said Matthew Marino admitted that he helped conceal the fraud at phony accounting firm Richmond-Fairfield Associates, which was being used in the cover-up, as well as by preventing lawyers involved in Israel’s divorce from obtaining Bayou documents that might have blown the cover off the fraud.
He also acknowledged that from January through August of 2005, he knew about the scheme hatched by his brother and co-conspirators Samuel Israel and James Marquez, but did not come forward.
Daniel Marino, who served as chief financial officer at Bayou, and Israel, who served as CEO, pleaded guilty to charges stemming from the Bayou fraud three years ago and are both serving 20 year sentences. Israel is also facing charges related to his flight from justice earlier this year. Marquez pleaded guilty two years ago and was sentenced to just over four years in prison.
Matthew Marino faces as much as three years in prison when he is sentenced on Dec. 4. He also faces a fine of as much as twice the gross gain or loss resulting from the crime and could be ordered to pay restitution of up to $300 million.
May 27 2015 | 2:15pm ET
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