John Carney, the attorney who is the court-appointed Receiver for the estate of the insolvent hedge funds formerly operated by convicted Ponzi schemer Francisco Illarramendi, has filed a Submission regarding the sum he has calculated should be the restitution sum charged to Illarramendi. The Receiver, after deducting for payments made, or anticipated to be made, to victims, advises that they will suffer an estimated loss of $370,482,716.54 . The total allowed claims were $734m, and the amount shown is the remaining loss, after giving effect to the anticipated plan distributions.
Illarramendi is presently serving a thirteen-year sentence in a Federal Correctional Institution for operating an unlicensed hedge fund, which became a Ponzi scheme, after the defendant chose to cover losses with money received from new investors. He also was found to have funded a lavish lifestyle, using funds diverted from the hedge funds he managed. The principal creditor is a pension fund of Petroleos de Venezuela, or PdVSA, the country's oil monopoly.
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