Ponta Negra Hedge Fund Manager Pleads Guilty
Thursday, January 7, 2010 : PermalinkNew York (HedgeCo.net) – Former Stamford hedge fund manager, Francesco Rusciano. waived his right to indictment and pleaded guilty today before US Judge Ellen Bree Burns in New Haven to one count of wire fraud.
According to court documents and statements made in court, from approximately March 2007 to April 2009, Rusciano operated a private investment fund, the Ponta Negra Fund I, LLC at his residence in Stamford. In approximately January 2009, he started the Ponta Negra Offshore Fund, LTD. Rusciano implied that the money invested in his hedge funds would be used for trading of spot, forwards, non-deliverable forwards, and options in G7 and emerging market economies.
In pleading guilty, he admitted that he defrauded investors by overstating his background and experience as a currency trader with his prior employer and by overstating his performance history.
Rusciano’s investors placed approximately $24 million in principal with the hedge funds during their time of operation and, in turn, investors redeemed approximately $9 million before his scheme was discovered. At the time the Securities and Exchange Commission froze the assets of the Funds in April 2009, approximately $15 million remained in the Funds.
Judge Burns has scheduled sentencing for April 2, 2010, at which time Rusciano faces a maximum term of imprisonment of 20 years. The FBI arrested Rusciano at his residence on May 1, 2009. He has been released on bond under electronic monitoring since May 4th.
Alex Akesson
Editor for HedgeCo.net
alex@hedgeco.net
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