Francisco Illarramendi, the unregistered hedge fund advisor who pled guilty, two years ago, in Federal Court in Connecticut, to running a $500m Ponzi scheme, has had his sentencing rescheduled again, this time to 30 September, 2013. Though the official word is that his multiple changes in legal representation are the reason for the repeated sentencing delays, such delays are often due to the fact that a convicted defendant is engaged in cooperating with the authorities, to obtain a shorter sentence, and that said cooperation is incomplete.
The Receiver's suit alleges that Beracha engaged in:
(2) Unjust Enrichment
(4) Common Law Fraudulent Transfer
(5) Constructive Trust
(6) Breach of Fiduciary Duty
(7) Conspiracy to Breach Fiduciary Duty
A Demand for an Accounting was also included.
The attorneys for the defendants filed a Limited Appearance, to object to personal jurisdiction, improper service of process, and Forum non Conveniens ***. These motions have not yet been ruled upon, though attorneys for both sides have filed extensive citations to relevant authorities.
When the Court decides pending motions in the civil suit, we shall report back to our readers, and also shall in the event that additional defendants are named in the criminal case.
* United States vs. Illarramendi, Case No.: 11-cr-00041-SRU (D Conn).
**Carney vs. Beracha, Case No.: 12-cv-00180-SRU (D Conn).
*** Inconvenient forum; it is a claim that the Connecticut Federal District Court should decline jurisdiction, as there is a more appropriate place to bring this action.