Hedge Fund Founder Sentenced for Fraud
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James G. Marquez, a founder of several Bayou Management hedge funds was sentenced to more than four years in prison for a scheme to defraud investors.
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A former Goldman Sachs associate who was accused of masterminding one of the broadest insider-trading conspiracies in years was sentenced to nearly five years in prison.
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The founders of Portus Alternative Asset Management were charged with multiple counts of fraud and money laundering, among others.
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Frank Quattrone, whose deft dealmaking made him an investment banking star during the Internet stock bubble and a millionaire many times over, was sentenced Wednesday to 1 1/2 years in prison for obstructing justice.
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A former Goldman Sachs Group Inc   analyst was sentenced to nearly five years in prison on  Thursday for leading an insider-trading ring that netted more  than $6 million in illegal profits.
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H&R Block's HRB.N broker affiliate  was censured and fined $500,000 for enabling a hedge fund  customer in its Orlando office to engage in deceptive practices  to market-time mutual funds, regulators said on Tuesday.
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(InfoWorld) - Kenneth Rice, former CEO of Enron Broadband Services (EBS), has been sentenced to 27 months in prison on securities fraud charges and ordered to turn over about $15 million, the U.S. Department of Justice announced Monday. The $15 million will go to victims of the fraud at Enron, the Texas energy company that filed for bankruptcy in December 2001 before investigations revealed widespread accounting fraud. Rice and others at EBS, a unit of Enron, made a series of false statements about the products and business performance in order to mislead investors about the success of the company and inflate the price of Enron's stock, the DOJ said in a press release. Rice was sentenced Monday by Judge Vanessa Gilmore at U.S. District Court for the Southern District of Texas in Houston. Rice pleaded guilty in July 2004 to a securities fraud charge and cooperated with the DOJ's investigation into the collapse of Enron. While serving as CEO at EBS, Rice conspired with others to make false statements about the company's development of various software capabilities and its fiber-optic network, the DOJ said. Rice falsely portrayed EBS as a commercial and business success and falsely claimed that network control software developed by EBS was "up and running," when in fact the software had not progressed beyond the internal development stage. These misrepresentations, including a failure to disclose to the investing public that the company stood to sustain operating losses in 2001, contributed to a sharp rise in Enron's stock price, the DOJ said. EBS entered a number of partnerships before Enron's collapse. In July 2000, Blockbuster announced that it struck an exclusive 20-year partnership with EBS to deliver video on demand by early 2001. Blockbuster began testing the service in February 2001. Kevin Hannon, the former COO at EBS, was sentenced by Gilmore earlier this month to two years in prison, and fined $125,000. Hannon pleaded guilty in August 2004 to conspiracy to commit securities fraud and wire fraud. To date, the federal Enron Task Force has brought criminal charges against 36 defendants, including 25 former Enron employees. Eighteen of those defendants have pleaded guilty or been found guilty after trial. The task force has seized more than $100 million in Enron cases.
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Heavy redemptions from investors concerned about their holdings of subprime mortgage securities claimed the Galena Street Fund of the Braddock Financial Corporation as the latest hedge fund victim.
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The former chief financial officer of defunct hedge fund Bayou Group was sentenced to 20 years in prison on Tuesday for his role in a scheme that defrauded investors of $450 million and led to the fund's collapse.
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Long-Term Capital Management LP, whose failure in 1998 forced a bailout by Wall Street&#39;s biggest investment banks, has to pay $56 million in tax and penalties after a judge said the hedge fund claimed an improper deduction.
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A Manhattan man pleaded guilty in an investment scam that bilked investors, mostly in Germany, of more than $18 million, U.S. prosecutors said on Wednesday.
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Brocade Communications Systems Inc's  former chief was sentenced on Wednesday to 21 months in prison for backdating stock-option grants in a scandal that has ensnared scores of U.S. companies and led to billions of dollars of restatements.
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Frank Quattrone, considered the most prominent investment banker of the 1990s technology boom, has been sentenced to 18 months in prison.
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A South Korean court found the private equity fund and one of its executives guilty of manipulating stock prices. The executive, Paul Yoo, was sentenced to five years.
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A former UBS PaineWebber systems administrator was sentenced Wednesday to eight years and one month in prison for attempting to profit by detonating a "logic bomb" program that prosecutors said caused millions of dollars in damage to the brokerage's computer network in 2002.
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A former executive at Computer Associates was sentenced Monday after pleading guilty to conspiracy charges in connection with a scheme to artificially bolster the companyâs quarterly revenue.
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WASHINGTON, Dec. 12 (Dow Jones/AP) â Federal regulators sued a hedge fund manager in Dallas on Tuesday, accusing him of making more than $6.5 million through illegal trading involving ânakedâ short sales of dozens of companies.