Please try again. Former Managing Partner Of Manhattan Investment IIG purported to value the trade finance loans in the IIG Funds on a regular basis. Assistant U.S. From approximately 2007 to 2019, HU conspired to defraud investors in IIG-managed funds by: (i) overvaluing distressed loans held by the IIG Funds, (ii) falsifying paperwork to create a series of fake loans that were classified, fraudulently, as positively performing loans, and to otherwise hide losses, (iii) selling overvalued and fake loans to a collateralized loan obligation trust and new private funds established and advised by IIG, and (iv) using the proceeds from those fraudulent sales to generate liquidity required to pay off earlier investors in a Ponzi-like manner. The managing partner and chief investment officer of a former New York RIA firm who was arrested in 2020 has been sentenced to 12 years in prison for his role in a First Name Email Address: His sentence will be formally enforced following the conclusion of the forfeiture and restitution proceeding in the case. . Mr. Silver cut a diminished figure in court, staggering in a few minutes before his sentencing wearing a dark, loosely fitted suit, a blue surgical mask and a pair of clear, disposable vinyl gloves. NY Fund Manager Gets 13 Months for $100 Million Ponzi Fraud (1) In or about March 2017, HU caused approximately $6 million to be transferred into an account associated with the Argentine Borrower from the account of a different borrower (Borrower-1), and further directed the funds from Borrower-1s account to pay off the debt owed by the Argentine Borrower to the Retail Fund. There was an error logging in. To further conceal the fraudulent nature of the New Loan, HU caused the creation of forged documents to make it appear as though the New Loan was a legitimate loan to the Argentine Borrower. This case is being handled by the Offices Securities and Commodities Fraud Task Force. Leave a Comment / BigLaw Pay, Power Firms / By, Lawyer and legal consultant Emma Haywood, who produces the 4 Day Lawyer as a monthly newsletter, wrote recently for the NZ Law Gazette about the move towards the 4 day work week for lawyers. Silver, who cooperated with the SEC, consented to a bifurcated settlement, agreeing to be permanently enjoined from violations of the charged provisions, with monetary relief to be determined by the court at a later date upon motion of the Commission. Martin Silver, 65, of New Jersey pleaded guilty in April, admitting that he conspired to defraud investors in funds managed by his firm, International Investment Group LLC, by overvaluing distressed loans and creating bogus documents and fake loans that were used to hide losses. You are now logged in. His sentence will be formally enforced following the conclusion of the forfeiture and restitution proceeding in the case. The judge says: 12 years in jail. Jon Shazar Apr 12, 2022 Here is one way to describe what International Investment Groups David Hu did alongside his partner at IIG and, in turn, HU, received a performance fee with respect to the IIG Funds, as well as a management fee, which was calculated as a percentage of the assets under management held in the Funds. Unless otherwise stated, photos Big Stock Photography Dreamstime Photos Google Maps Thompson Reuters. This case is being handled by the Offices Securities and Commodities Fraud Task Force. That parallel case was stayed since Sept. 21, 2020, until the conclusion of the Justice Department criminal case. Then, HU caused the CLO Trust to enter into fake loan transactions with the Panamanian Shell Entities. The court said beginning in 2007, Hu and others engaged in various deceptive acts to cover up losses in its Trade Opportunities Fund (TOF). He was convicted of using his clout in state government to benefit real estate developers, who rewarded Silver by referring lucrative business to his law firm. In March 2018, IIG reported to the SEC that it had about $373 million in assets under management. In January 2021, Hu pleaded guilty to investment adviser fraud, securities fraud, and wire fraud offenses. . Inducing a retail mutual fund to invest in a fictitious $6 million loan. The court also announced that it would impose restitution to victims and forfeiture of the proceeds of the offenses, with the amounts to be determined at a later date, the release noted. SanctuaryWealth Picks Up $1B Advisory Team From Merrill, Friend of Warren Buffett Unpacks His Investing Wisdom, Cetera Adds Direct, Custom Indexing to Advisory Platform, 9 Trends That Sum Up the State of RIAs: Cerulli, Wells Fargo Appeals Arb Ruling Struck Down in Court. He has not yet been sentenced. IIGs trade finance loans were purportedly secured by collateral, such as the underlying traded goods, assets held by the borrowers, or expected payments by third parties. On March 23, 2023, the U.S. District Court for the Southern District of New York entered a final consent judgment against Martin Silver, the co-founder of International Investment Group (IIG), a formerly registered investment adviser, enjoining him from violating the antifraud provisions of the federal securities laws. VIII. No portions of this website may be reproduced, retransmitted, copied, or republished without expressed written consent from Shore News Media & Marketing, LLC. An example of data being processed may be a unique identifier stored in a cookie. IIGs trade finance loans were purportedly secured by collateral, such as the underlying traded goods, assets held by the borrowers, or expected payments by third parties. IIG, an SEC-registered investment adviser, provided investment management and advisory services, including for three private funds that it operated: (1) the IIG Trade Opportunities Fund N.V. (TOF), (2) the IIG Global Trade Finance Fund, Ltd. (GTFF), and (3) the IIG Structured Trade Finance Fund, Ltd. (STFF). Skywatchers: Mays Full Flower Supermoon will be followed by a lunar South Carolina, Texas See New Mass Shootings. IIG advertised itself as specializing in global trade financing, particularly in providing trade finance loans to small and medium-sized businesses. In offering memoranda and communications with investors, IIG advertised strict risk controls, such as promises to use diligence to carefully select borrowers or issuers with trusted management and marketable assets, and portfolio concentration limits based on borrower, developing country, and industry.
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