Sunday, 28 August 2016
Last updated 1 day ago
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.