New York (HedgeCo.net) – Hedge fund manager James Brandolino turned himself in to the FBI, confessing to $3.5 million fraud, Courthouse News Services reported today.
“Brandolino, 42, of Joliet and formerly of Chicago, obtained about $4.7 million from 48 high net worth investors since 2003 for purported managed futures trading accounts and a commodity pool investment,” the FBI said, “He provided about $1.1 million in investor redemptions and allegedly lost roughly half of the total invested funds through trading and misused most of the remaining funds for his own benefit. Most of the misappropriated funds were spent, with his only remaining assets consisting of a luxury automobile, a watch and an interest in an unbuilt condominium in Greece on which he put down 80,000 Euros, or more than $107,000.”
The FBI’s affidavit also said, “Brandolino has held NFA [National Futures Association] registrations in various capacities in the commodities brokerage business, including as an ‘Associated Person,’ a ‘Floor Broker’ and a ‘Principal,’ from May 1997 until January 2011, with exchange floor trading privileges at the Chicago Board of Trade, which is now part of the CME Group.”
Brandolino has also been a principal of several commodities trading businesses, including of Brandolino Investment Group (‘BIG’), Lloyd Lewis Capital Inc., Falcon Trading Group Incorporated and Falcon Capital Partners LLC.
The hedge fund manager also admitted to falsifying financial statements. Brandolino appeared before U.S. Magistrate Judge Michael Mason and asked to remain in federal custody. If convicted, the hedge fund manager faces a maximum penalty of 20 years in prison, a $250,000 fine, and restitution is mandatory.
Alex Akesson
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