New York (HedgeCo.Net) – A prosecutor has asked a federal judge to hold a convicted hedge fund manager’s $2 million tax refund in escrow pending his September sentencing for operating the largest Ponzi scheme ever investigated in Connecticut.
“A federal judge has been asked to hold the money in escrow pending the September sentencing of Venezuelan financier Francisco Illarramendi (ee-yah-rah-MEHN’-dee).” AP reports.
The Hearst Connecticut Media Group reports that prosecutors say It would be prudent for the court to make sure there is no repeat of Illarramendi’s misuse of funds. The SEC has also sued him in a pending civil complaint.
As part of his agreement to help the U.S. government in finding and convicting others involved in the conspiracy and to help the receiver track down funds, Illarramendi had been free on bond since his guilty plea in early 2011.
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