{"id":1589,"date":"2015-02-04T18:00:01","date_gmt":"2015-02-04T18:00:01","guid":{"rendered":"https:\/\/www.stockbrokerfraudblog.com\/2015\/02\/hedge_fund_fraud_leads_to_crim"},"modified":"2022-03-11T13:41:10","modified_gmt":"2022-03-11T19:41:10","slug":"hedge-fund-fraud-leads-to-crim","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/hedge-fund-fraud-leads-to-crim\/","title":{"rendered":"Hedge Fund Fraud Leads to Criminal Convictions"},"content":{"rendered":"

\t\t\t\tFrancisco Illarramendi has been sentenced to 13 years behind bars for a Connecticut securities scam<\/a> that involved hundreds of millions of dollars from the state oil company of Venezuela. The 45-year-old ex-hedge fund manager said he committed the crimes to conceal investment losses and because he was pressured by corrupt government officials in the South American country.<\/p>\n

Illarramendi, a Venezuelan-American, devised a currency arbitrage market that he claims made $60 billion for the government in Caracas, which kept it from failing. In 2005, he began his hedge fund scam to conceal $5 million in losses in a failed bond transaction that was made for the Venezuelan government. Illarramendi contends that he and his family were threatened with violence if they refused to go along.<\/p>\n

The judge, however, noted that the former hedge fund manager took $20 million for his own purposes. In time, the fraud grew as Illarramendi continued to use his hedge funds to cover what now exceeded over $500,000 million. He also paid million of dollars in bribes to government officials in Venezuela for sending the oil company’s money to him, which he invested. Illarramendi pleaded guilty to fraud and conspiracy to obstruct justice in 2011. To date, the court appointed receiver has recovered enough to pay investor claims of over $345 million but more needs to be recovered. <\/p>\n

Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

Francisco Illarramendi has been sentenced to 13 years behind bars for a Connecticut securities scam that involved hundreds of millions of dollars from the state oil company of Venezuela. The 45-year-old ex-hedge fund manager said he committed the crimes to conceal investment losses and because he was pressured by corrupt government officials in the South […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3748],"tags":[],"class_list":["post-1589","post","type-post","status-publish","format-standard","hentry","category-hedge-funds"],"yoast_head":"\nHedge Fund Fraud Leads to Criminal Convictions — Investor Lawyers Blog — February 4, 2015<\/title>\n<meta name=\"description\" content=\"Francisco Illarramendi has been sentenced to 13 years behind bars for a Connecticut securities scam that involved hundreds of millions of dollars from the — February 4, 2015\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link 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