{"id":45636,"date":"2014-12-29T09:19:16","date_gmt":"2014-12-29T14:19:16","guid":{"rendered":"http:\/\/www.hedgeco.net\/news\/?p=45636"},"modified":"2014-12-29T09:29:40","modified_gmt":"2014-12-29T14:29:40","slug":"mit-dean-and-son-plead-guilty-in-hedge-fund-scam","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/12\/2014\/mit-dean-and-son-plead-guilty-in-hedge-fund-scam.html","title":{"rendered":"MIT Dean and Son Plead Guilty in Hedge Fund Scam"},"content":{"rendered":"

\"redemptions\"<\/a>New York (HedgeCo.Net) – Two Boston-area hedge fund managers pleaded guilty to conspiring to mislead investors into investing more than $500 million in their fraudulent hedge fund business.<\/p>\n

Gabriel Bitran, 69, of Newton, a former professor and associate dean of the Massachusetts Institute of Technology (MIT) Sloan School of Business, and his son Marco Bitran, 39, of Brookline, a Harvard Business School graduate and money manager, pleaded guilty to conspiracy to commit securities fraud, wire fraud and obstruction of justice in connection with their hedge fund businesses, GMB Capital Management and GMB Capital Partners. U.S. Senior District Judge Mark L. Wolf deferred a determination as to whether he will accept the plea until the time of sentencing which is scheduled for March 27, 2015.<\/p>\n

\u201cThis office continues to pursue complex white-collar crimes no matter who the perpetrator,\u201d said United States Attorney Carmen M. Ortiz. \u201cNo one is above the law. Here, a highly respected MIT professor and his well-educated son used their connections to lure investors into a scam which ultimately lost more than $140 million.\u201d<\/p>\n

\u201cGabriel and Marco Bitran cheated their victims out of hundreds of millions of dollars of their retirement money and savings by lying to them over and over again and claiming false returns and profits. Today\u2019s guilty plea is a significant step in our ongoing effort to bring justice to victims of investment fraud. The FBI and our law enforcement partners will keep exposing those responsible for these crimes as long as innocent people are cheated out of their hard earned money,\u201d said Vincent B. Lisi, Special Agent in Charge of the Boston Division of the FBI.<\/p>\n

\u201cInvestment returns that seem too good to be true \u2013 such as those offered by the Bitrans \u2013should be a signal to investors to stay clear\u201d said Special Agent in Charge William P. Offord of IRS Criminal Investigation. \u201cToday\u2019s guilty pleas demonstrate our collective efforts to ensure that the financial services industry will not be used for unlawful personal gain, but will be operated in a fair and honest manner to promote the public interest.\u201d<\/p>\n

In total, the Bitrans lost more than $140 million of GMB investors\u2019 principal.<\/p>\n

If the plea agreements are accepted by the Court, the Bitrans will be sentenced to no less than two years and no more than five years in jail, as well as three years of supervised release, and forfeiture in the amount of $10 million.<\/p>\n","protected":false},"excerpt":{"rendered":"

New York (HedgeCo.Net) – Two Boston-area hedge fund managers pleaded guilty to conspiring to mislead investors into investing more than $500 million in their fraudulent hedge fund business. Gabriel Bitran, 69, of Newton, a former professor and associate dean of […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-45636","post","type-post","status-publish","format-standard","hentry","category-hedgeco-news"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/45636","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=45636"}],"version-history":[{"count":3,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/45636\/revisions"}],"predecessor-version":[{"id":45638,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/45636\/revisions\/45638"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=45636"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=45636"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=45636"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}