A career criminal running a fraudulent hedge fund in New York that stole $11.2 from investors was sentenced recently to one hundred and forty months in Federal Prison. Nicolas Joseph Genovese, who ran Willow Creek Investments LP, claimed to be from a wealthy family, had a Dartmouth MBA, alleged substantial experience as a portfolio manager at Goldman Sachs and Bear Stearns, and purportedly managed $4bn in family assets.
In truth and in fact, Genovese had none of these qualifications, and he had several prior felony convictions for fraud-related offenses. He lost $8m of the victims' money trading on the stock market, and spent the rest while maintaining a high-end life style, including withdrawing $263,000 from various ATMs, and a Bentley with a chauffeur. He spun a fantastic story to investors who sought their money back, about the need for "the stars to be aligned" before he could make refunds.
In addition to the 140 months, the defendant was sentenced to three years of Supervised Release and $11.2 Restitution. If you want to learn more about this case, read the SEC civil lawsuit against him here. The style of the case is Securities & Exchange Commission vs.Nicolas Genovese, Willow Creek Investments LP and Willow Creek Advisers LLC., Case No: 18CV942 (SDNY).
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