New York (HedgeCo.Net) – A portfolio manager for the now collapsed hedge fund Millennium Global Investments has been sentenced to 4 years in prison and 3 years of supervised release, The Wall Street Journal reports.
Michael Balboa, a London-based hedge fund manager, was convicted in 2013 for providing fake valuations on Nigerian warrants at the height of the financial crisis. The scheme generated millions of dollars in management and performance fees for which he earned as much as $6.5 million, prosecutors said.
WSJ reports: “Prosecutors said Mr. Balboa overvalued the warrants by as much as 13 times the known trading price. The warrants were one of the fund’s two largest holdings, prosecutors said. As a result, the hedge fund’s net assets were overstated in communications to investors, prosecutors had said. The fund collapsed in October 2008 after suffering nearly $1 billion in losses.”
Balboa was also ordered to pay more than $390 million in restitution and forfeit $2.2 million.
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