WEST PALM BEACH, FL (www.hedgeco.net) – The Securities and Exchange Commission has charged the manager of Tiburon Asset Management and Tiburon Partners with fraud, according to the SEC. The hedgefund manager cheated investors out of millions of dollars by inflating returns and investing in risky companies.
The manager of the funds, 32 year old Vincent Montagna, was charged with nine counts of fraud including two counts of securities fraud, two counts of investment adviser fraud and five counts of wire fraud. The indictment was filed in the Manhattan Federal court according to the report.
The charges were handed down following a grand jury indictment by the Justice Department. Montagna was charged with losing about $10 million of investor assets while at the same time overstating the value of hedge fund portfolios which he managed. Through such fraud, the manager was able to levy higher management fees to the investors, by over inflating the value of the fund�s portfolios.
The SEC also accused Montagna of siphoning off investor assets to use them for the payment of travel related expenses. He also allegedly bought a mink jacket as well as for paying his credit card bills. Montagna also invested assets in small unstable companies that in turn provided side benefits to him such as stock options, the government alleged. Montagna and his lawyers could not be immediately reached for comments.
Montagna is facing a 10 year prison sentence on each of the convictions for securities and wire fraud, and 5 year sentence on each of the investment adviser fraud counts if found guilty of the charges.
Paul Oranika
Editor-in-Chief
HedgeCo.Net
Email: Editor@hedgeco.net
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