North Country Gazette – The brother of the former chief financial officer of the bankrupt hedge fund firm Bayou Group LLC has been sentenced to 21 months in federal prison of his role in concealing a $400 million fraud.

Matthew Marino, brother of Daniel Marino, was also ordered to pay $60 million in restitution.

Prosecutors say that Marino knew about the fraud on the investors in the now-collapsed Bayou Hedge Funds and took steps to conceal it. His brother is serving 20 years for the scheme as is Bayou co-founder Samuel Israel.

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Tags: 21 months, 60-million, bayou hedge funds, brother, chief-financial-officer, co founder, country gazette, federal prison, fraud, group-llc, investors, israel, north country, prosecutors, restitution

North Country Gazette – A former registered broker with the National Association of Securities Dealers has been charged in a criminal information with conspiracy, securities fraud and wire fraud stemming from his participation with attorney Marc Dreier in the sale of fictitious promissory notes to various hedge funds.

Kosta Kovachev, 57, is charged with one count of conspiracy to commit securities fraud and wire fraud, one count of securities fraud, and one count of wire fraud.  The Government also seeks to forfeit the funds Kovachev received from Dreier as payment for his fraudulent activities. 

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Tags: conspiracy, country gazette, dreier, fraudulent activities, national association of securities, north country, participation, promissory notes, securities dealers, securities fraud, wire-fraud