{"id":20269,"date":"2011-01-31T07:36:08","date_gmt":"2011-01-31T11:36:08","guid":{"rendered":"http:\/\/www.hedgeco.net\/news\/?p=20269"},"modified":"2011-01-31T07:48:28","modified_gmt":"2011-01-31T11:48:28","slug":"connecticut-hedge-fund-manager-charged-by-the-sec-in-53-million-fraud","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/01\/2011\/connecticut-hedge-fund-manager-charged-by-the-sec-in-53-million-fraud.html","title":{"rendered":"Connecticut Hedge Fund Manager Charged By The SEC In $53 Million Fraud"},"content":{"rendered":"

New York (HedgeCo.net) – The SEC has obtained a court order freezing the assets of a Stamford, Conn.-based investment adviser and its principal, Francisco Illarramendi, charging that they misappropriated at least $53 million in investor funds and used the money for self-dealing transactions, according to an SEC complaint.\"\"<\/a><\/p>\n

\u201cIllarramendi treated his clients\u2019 money like it was his own, diverting millions of dollars that did not belong to him,\u201d said David P. Bergers, Director of the SEC\u2019s Boston Regional Office. \u201cHe abused his position of trust with his clients and breached his responsibilities as an investment adviser.\u201d<\/p>\n

The SEC alleges that Illarramendi defrauded investors in the several hedge funds he managed by improperly transferring their money into bank accounts that he personally controlled. He then invested the money for his own benefit or for the benefit of the entities that he controlled, rather than for the benefit of the hedge fund investors.<\/p>\n

According to the SEC’s complaint filed in U.S. District Court for the District of Connecticut on January 14, Illarramendi is the majority owner of the Michael Kenwood Group LLC \u2014 a holding company for, among other entities, investment adviser Michael Kenwood Capital Management LLC. Through this adviser entity, Illarramendi manages several hedge funds, including one that contains up to $540 million in assets. The SEC\u2019s complaint alleges that Illarramendi took at least $53 million in investor money out of this hedge fund without the knowledge or consent of the hedge fund\u2019s investors<\/p>\n

The SEC sought an asset freeze and other emergency relief ,\u00a0also naming other Illarramendi-controlled entities as relief defendants, including, Michael Kenwood Asset Management LLC, Michael Kenwood Energy and Infrastructure LLC, and MKEI Solar LP.\u00a0The SEC investigation is ongoing.<\/p>\n

Editing by Alex Akesson
\nEditor for HedgeCo.net<\/a>
\nalex@hedgeco.net<\/a>
\nHedgeCo.Net<\/a> is a premier hedge fund database<\/a> and community for qualified and accredited investors only. Membership in HedgeCo.net<\/a> is FREE and EASY. We also offer FREE LISTINGS for Hedge Funds<\/a>!<\/p>\n","protected":false},"excerpt":{"rendered":"

New York (HedgeCo.net) – The SEC has obtained a court order freezing the assets of a Stamford, Conn.-based investment adviser and its principal, Francisco Illarramendi, charging that they misappropriated at least $53 million in investor funds and used the money […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11,3],"tags":[],"class_list":["post-20269","post","type-post","status-publish","format-standard","hentry","category-hedge-fund-fraud","category-hedgeco-news"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/20269","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=20269"}],"version-history":[{"count":5,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/20269\/revisions"}],"predecessor-version":[{"id":20271,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/20269\/revisions\/20271"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=20269"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=20269"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=20269"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}