RECEIVER IN ILLARRAMENDI HEDGE FUND PONZI SCHEME DISMISSES SUIT AGAINST MORIS BERACHA

Francisco Illarramendi

John Carney, the BakerHostetler partner who is the court-appointed Receiver in the Michael Kenwood Corp. hedge fund Ponzi scheme case, managed by its indicted operator, Francisco Illarramendi, has stipulated with the attorneys for defendant Moris Beacha, against whom carney had a $171m civil suit pending, to dismiss the civil action, against Beracha, and all related corporate defendants, with prejudice. This is a strangerturn of events, for which there is no publicly-available explanation.

The defendants, who were to have filed an Answer to the amended complaint by August 11, never responded, and we are unable to learn what their defenses were. We do not know whether there was a monetary settlement in the civil action, as searches of both the pleadings in the court file, as well as the original SEC suit, wherein Attorney Carney was appointed Receiver, are silent on any financial settlement.

Morris Beracha

Mr. Beracha, it is alleged by the receiver, kept Illarramendi's hedge fund afloat, by the infusion OF funds, when they were desperately needed to keep the Ponzi scheme solvent. The circumstances under which the dismissal was entered remain unknown at this time. There may be a confidential settlement in place, in which case, we will remain in the dark. It is also possible that Mr. Carney was unable to obtain sufficient evidence to link Beracha to the Ponzi scheme, and chose not to continue the suit.

John Carney, Esq.

 Also still a puzzle is the scope of the role played by the enigmatic Spanish investor, Javier José Ardura Gomez. If you are not familiar with this aspect of the Illarramendi scandal, you can access the complete text of our earlier article here*.
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*http://rijock.blogspot.com/2014/03/how-did-mysterious-investor-figure-in.html