New York (HedgeCo.net) – New Jersey hedge fund manager Robert J. Sucarato has entered a guilty plea in connection with a $1.6 million investment fraud scheme, Sucarato is President of the New York Financial Company (NYFC), the Westmoreland Times reported today.
The NYFC was purported to be run out of a virtual office in a “hedge fund hotel” in New York. Sucarato is charged with misrepresentation and fraud. Investors provided Sucarato with more than $1.6 million for his two hedge funds, NYFC Strategic Fund and the NYFC Diversified Strategic Fund, which Sucarato admitted to later spending himself.
The charge carries up to 20 years in prison and a fine of $250,000 or twice the gross loss to victims, whichever is greater. Sentencing is scheduled for May 2, 2011.
Carlos Garcia was also sentenced to more than five years in prison Tuesday for heading a $2 million hedge fund investment scheme. Garcia acted as an investment adviser/ hedge fund manager to sell shares of Paramount Equity Partners, LLC. Investors lost more than $2 million.
The New Haven register reports: “Court documents showed that from 2002 to 2009, Garcia directed some of his clients to cash out their stock holdings or other investments, get surrender checks by mail and endorse them to Garcia Capital Management, LLC, before transferring the checks into his bank account. He also encouraged other clients to wire transfer money into the bank account for Paramount Equity Partners, LLC, and then transferred those funds into his account.”
Alex Akesson
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