Bayou CFO’s Brother Gets 21 Months For Hiding Fraud

Apr 23 2009 | 10:53am ET

The fourth man convicted in the Bayou Group hedge fund fraud case was sentenced to almost two years in prison this week.

Matthew Marino, the brother of former Bayou CFO Daniel Marino, received 21 months in prison for his role in covering up the $400 million fraud. U.S. District Judge Stephen Robinson in White Plains, N.Y., also ordered Matthew to pay $60 million in restitution.

Marino, who pleaded guilty to failing to report a crime in September, “knew that a fraud was being perpetrated on Bayou investors and helped conceal the fraud,” Acting U.S. Attorney Lev Dassin said. Marino admitted at his plea hearing that he doctored a phony document and kept lawyers from getting their hands on documents that would have uncovered the fraud, which collapsed in 2005.

“This is a particularly tragic situation, given the substantial handicaps my client has overcome,” Eugene Riccio, Marino’s lawyer, told Bloomberg News. “He’s virtually deaf.”

Marino’s brother is serving a 20-year sentence for his role in running the Connecticut scheme. The firm’s co-founder and former CEO, Samuel Israel, also got 20 years, and pleaded guilty earlier this year to bail-jumping. He faces another 10 years in prison.

Another Bayou co-founder, James Marquez, was sentenced to more than four years in prison for his role in the fraud.


In Depth

Malik: The Science of Deal Sourcing 201

Aug 27 2015 | 5:35pm ET

Deal sourcing is understandably a hot topic among private equity firms because it...

Lifestyle

Rolling Art Advisors Marketing Collectible Car Fund As Uncorrelated Alternative

Aug 27 2015 | 6:47pm ET

A new fund is trying to provide investors with greater access to an emerging asset...

Guest Contributor

Agecroft Partners: Hedge Fund Industry Assets to increase $250B by Summer 2016

Aug 11 2015 | 11:29am ET

Assets will continue to flow into the hedge fund industry despite long-standing...

 

Editor's Note