December 22, 2006
Former Hedge Fund Exec Defrauded Investors Of $10 mn.
Some really painful news here. The co-founder of Bayou Funds recently pleaded guilty to conspiring to defraud investors of more than $10 million. James G. Marquez faces up to five years in prison for this fraud. Marquez, who helped start Bayou Fund LLC and Bayou Fund Ltd., also faces fines, and restitution of $6.25 million. He will also have to forfeit any gains he got through his crimes.
Marquez admitted that he and other Bayou executives got investors to contribute more than $10 million to the funds. They made the investors believe the funds were making money when they were in fact losing money. Thejournalnews.com reports:
Marquez conspired with Bayou co-founder Samuel Israel III, who was the chief executive officer of Bayou and once lived in Mount Kisco, and Daniel E. Marino, who was the chief financial officer. Marino and Israel have both pleaded guilty to similar charges and are scheduled to be sentenced next month. Bayou funds collapsed last year after Marino and Israel sought to recover losses by investing money from the funds in fraudulent private placement accounts in other countries, prosecutors said.
Read more: Former hedge fund exec guilty
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