martin silver sentencing

To replace the funds from Borrower-1s account that were used to make it appear as though the Argentine Borrower had repaid its debt to the Retail Fund, HU fraudulently induced the Retail Fund to invest in a new, fake $6 million loan to the Argentine Borrower (the New Loan). IIG purported to value the trade finance loans in its funds on a regular basis. Convicted at his second trial, Silver was sentenced in 2018 to six and a half years in prison. He began serving his sentence in 2020, despite pleas from his lawyers about his health problems and the COVID-19 pandemic. Then, HU caused the CLO Trust to enter into fake loan transactions with the Panamanian Shell Entities. The Court also announced that it would impose restitution to victims and forfeiture of the proceeds of the offenses, with the amounts to be determined at a later date. IIG also advised the Venezuela Recovery Fund, a fund that managed the remaining assets of a failed Venezuelan bank. Hus lies caused millions of dollars of losses. Martin Silver had co-founded investment advisory firm in 1994 Co-conspirator David Hu was sentenced to 12-year term in July The co-founder of an investment U.S. District Judge Alvin Hellerstein issued the sentence against Hu on Monday. IIGs trade finance loans were purportedly secured by collateral, such as the underlying traded goods, assets held by the borrowers, or expected payments by third parties. Sentencing before Judge Hellerstein has been scheduled for November 16, 2021, at 11:00 a.m. IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that this Court shall retain jurisdiction of this matter for the purposes of enforcing the terms of this Judgment. The court also plans to impose restitution to victims and forfeiture of the proceeds. IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also binds the following who receive actual notice of this Judgment by personal service or otherwise: (a) Defendant's officers, agents, servants, employees, and attorneys; and (b) other persons in active concert or participation with Defendant or with anyone described in (a). All defendants in crime reports are presumed innocent until proven guilty. a};@_5,}V$dYOKl'[>r. Hu and Silvers Ponzi-like scheme involved overvaluing distressed loans held by IIG funds, falsifying documents to create a series of fake loans that were classified as performing, selling overvalued and fake loans to a collateralized loan obligation trust, and new private funds established and advised by IIG, and using the proceeds from those fraudulent sales to generate liquidity required to pay off earlier investors. The SEC also fileda complaint in the same court against Hu in 2020 over the scheme. In addition to the prison sentence, HU, 64, of West Orange, New Jersey, was ordered to serve three years of supervised release. This case is being handled by the Offices Securities and Commodities Fraud Task Force. Public Service Announcement on Sexual Assault in Public Housing. His sentencing is pending, Williams said. My Office remains committed to policing investment advisers who seek to take advantage of their clients for personal and professional gain.. IIGs principal investment advisory strategy, including with respect to the IIG Funds, was investing in trade finance loans that it also originated. The former managing partner and chief investment officer of a New York-based investment advisory firm has been sentenced to 12 years in prison for his role in IIGs purported expertise was in trade finance loans to borrowers located in Central or South America, and in a variety of industries, with a stated focus on soft commodities, such as coffee, agriculture, fishing, and other food products. (212) 637-2600, Human Trafficking & Child Sexual Exploitation, Department of Justice Harassment Prevention Resource, Download Martin Silver superseding information. IIG purported to value the trade finance loans in the IIG Funds on a regular basis. They overvalued portfolio assets and replaced non-performing assets with fictitious loans that were reported as if they were legitimate performing assets, among other deceptions. He was convicted of using his clout in state government to benefit real estate developers, who rewarded Silver by referring lucrative business to his law firm. The court also announced it planned to impose restitution to victims and forfeiture of the proceeds of the offenses involved in the case, with the amounts to be determined at a later date. . A foreign institutional investor provided $70 million as the seed investment for GTFF, and, later, $130 million as the seed investment for STFF. Tr. In addition to the 12 years of prison time, the judge also ordered Hu to serve three years of supervised release. Some of our partners may process your data as a part of their legitimate business interest without asking for consent. Manhattan U.S. Attorney Audrey Strauss said: Today, Martin Silver admitted to participating in a sophisticated, decade-long scheme to defraud IIG funds and investors, abandoning his fiduciary responsibilities to IIGs clients, and causing millions of dollars of losses. This Legal Leader Thinks So, 10 Steps for Lawyers to Streamline their BD Process, Best Trusts and Estates Law Firms: Top Picks for Your Legal Needs. Investments in TOF, STFF, and GTFF were marketed by IIG to institutional investors, such as pension funds, hedge funds, and insurers. Hu did that by: overvaluing distressed loans held by the IIG Funds; falsifying paperwork to create a series of fake loans that were fraudulently classified as positively performing loans; and selling overvalued and fake loans to a collateralized loan obligation trust and new private funds established and advised by IIG, according to the Justice Department. Silver personally signed off on rent regulation and 421-a tax abatement legislation. WebThe documents, which lawyers for Silver have been fighting to keep under seal, will be released by 9 a.m. Friday and redacted in part to protect sensitive details about the people named in them. The SEC's investigation was conducted by Lindsay Moilanen and Diego Brucculeri of the New York Regional Office, with assistance from Eli Bass of the Division of Examinations. Investments in TOF, STFF, and GTFF were marketed by IIG to institutional investors, such as pension funds, hedge funds, and insurers. The managing partner of a New York City investment advisory firm was sentenced Monday to 12 years in prison for his role in a Ponzi scheme that defrauded investors out of more than $120 million. Specifically, HU caused the creation of shell entities domiciled in Panama (Panamanian Shell Entities) that were controlled by an IIG nominee. Throughout the course of more than 10 years, SILVER perpetrated the scheme by, among other fraudulent actions, creating fictitious investments and overvaluing investments used to generate funds to pay off earlier investors in a Ponzi-like manner. State of the US legal market . . In this March 12, 2019 file photo, Martin Fox arrives at federal court in Boston to face charges in a national college admissions bribery scandal. Trade finance loans are used by small and medium-sized companies, typically exporters and importers, to facilitate international trade. One St. Andrews Plaza - New York, NY 10007, Securities, Commodities, & Investment Fraud, James Margolin, Nicholas Biase . IIG and, in turn, Hu, received a performance fee with respect to the IIG Funds, as well as a management fee, which was calculated as a percentage of the assets under management held in the Funds, the court said. Specifically, in or about December 2012, IIG became an investment adviser to an open-ended mutual fund marketed to retail investors (the Retail Fund). You are now logged in. SILVER pled guilty to investment adviser fraud, securities fraud, and wire fraud offenses in April 2021 and his sentencing is pending. Investments in TOF, STFF, and GTFF were marketed by IIG to institutional investors, such as pension funds, hedge funds, and insurers. Skywatchers: Mays Full Flower Supermoon will be followed by a lunar South Carolina, Texas See New Mass Shootings. Elon Musk's go-to Lawyer. Sheldon Silver arrives at Manhattan federal court on Tuesday. Pursuant to Fed. His sentence will be formally enforced following the conclusion of the forfeiture and restitution proceeding in the case. Ms. Strauss praised the investigative work of the FBI and also thanked the SEC for its assistance. however there are also some major disadvantages of working in major law firms that can take their toll on younger lawyers.Money, stress, advancement, resources, networking . Mr. Williams praised the investigative work of the FBI and also thanked the U.S. Securities and Exchange Commission for its assistance. Silver, who cooperated with the SEC, consented to a bifurcated settlement, agreeing to be permanently enjoined from violations of the charged provisions, with monetary relief to be determined by the court at a later date upon motion of the Commission. IIG, an SEC-registered investment adviser, provided investment management and advisory services, including for three private funds that it operated: (1) the IIG Trade Opportunities Fund N.V. (TOF); (2) the IIG Global Trade Finance Fund, Ltd. (GTFF); and (3) the IIG Structured Trade Finance Fund, Ltd. (STFF). In addition to the prison sentence, HU, 64, of West Orange, New Jersey, was ordered to serve three years of supervised release. SILVER was a managing partner and the chief operating officer of IIG. In addition, the proceeds from those fraudulent sales were used to generate liquidity required to pay off earlier investors in a Ponzi-like way, the Justice Department charged. He admitted to operating a Ponzi-like scheme to steal money from IIG investment advisory fund clients and investors for ten years. Defendant Martin Silver (Defendant) waives service of a summons and the complaint in this IIG purported to value the trade finance loans in the IIG Funds on a regular basis. IIG advertised itself as specializing in global trade financing, particularly in providing trade finance loans to small and medium-sized businesses. An example of data being processed may be a unique identifier stored in a cookie. Inducing a retail mutual fund to invest in a fictitious $6 million loan. IIGs purported expertise was in trade finance loans to borrowers located in Central or South America, and in a variety of industries, with a stated focus on soft commodities, such as coffee, agriculture, fishing, and other food products. The scheme HU participated in involved, among other things: * * *. Audrey Strauss, United States Attorney for the Southern District of New York, announced that MARTIN SILVER, a managing partner and the chief operating officer of the New York-based investment advisory firm International Investment Group (IIG), pled guilty today before U.S. District Judge Alvin K. Hellerstein to investment adviser fraud, securities fraud, and wire fraud offenses in connection with an over $100 million scheme to defraud IIGs investment advisory fund clients and investors. Trade finance loans are used by small and medium-sized companies, typically exporters and importers, to facilitate international trade. One St. Andrews Plaza - New York, NY 10007, Nicholas Biase Mr. Williams praised the investigative work of the FBI and also thanked the U.S. Securities and Exchange Commission for its assistance. On Feb. 1, 2021, the court lifted the stay for the limited purpose of considering the parties motion for entry of a consent judgment against Hu partially resolving the case, and the court granted the motion that day, according to court documents. Updated. In March 2018, IIG reported to the SEC that it had approximately $373 million in assets under management. Marivic has been a freelance writer/journalist for nearly 20 years. In [], Manchester City 'hire 5,000-an-hour lawyer to fight Premier League charges', COLCHESTER, Conn., June 11, 2004 -LAWFUEL Scott + Scott, LLC, a Co, One of the longest running cases to affect the LMX reinsurance spira, 3 October LAWFUEL The Law News Network Ex-NFL star TIMMY SMITH, , June 17, 2004 LAWFUEL Skadden was ranked as the top corporat, Law firms take different approaches to in-office policies about in-office work, 4 Principals That Can Help Lawyers With The 4 Day Work Week. Todays sentence sends the message that brazen fraud does not pay and will be appropriately punished.. Throughout the course of more than 10 years, SILVER perpetrated the scheme by, among other fraudulent actions, creating fictitious investments and overvaluing investments used to generate funds to pay off earlier investors in a Ponzi-like manner. As an investment adviser to the Retail Fund, IIG made investment recommendations, including recommendations that the Retail Fund invest in trade finance loans originated by IIG. In addition to the prison sentence, Hu was ordered to serve three years of supervised release. IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that the Consent is incorporated herein with the same force and effect as if fully set forth herein, and that Defendant shall comply with all of the undertakings and agreements set forth therein. Making sure that victims of federal crimes are treated with compassion, fairness and respect. According to the U.S. Attorneys Office for the Southern District of New York, Hu and his co-conspirator Martin Silver established IIG in 1994. Generating liquidity by selling fraudulent loans to two new private IIG managed funds: GTFF and STFF. HU was a managing partner and the chief investment officer of IIG. IIG, an SEC-registered investment adviser, provided investment management and advisory services, including for three private funds that it operated: (1) the IIG Trade Opportunities Fund N.V. (TOF), (2) the IIG Global Trade Finance Fund, Ltd. (GTFF), and (3) the IIG Structured Trade Finance Fund, Ltd. (STFF). U.S. Attorney Damian Williams said: David Hu shirked his fiduciary responsibilities and defrauded IIG funds and investors for more than a decade. From approximately 2007 to 2019, SILVER conspired to defraud investors in IIG-managed funds by: (i) overvaluing distressed loans held by the IIG Funds, (ii) falsifying paperwork to create a series of fake loans that were classified, fraudulently, as positively performing loans, and to otherwise hide losses, (iii) selling overvalued and fake loans to a collateralized loan obligation trust and new private funds established and advised by IIG, and (iv) using the proceeds from those fraudulent sales to generate liquidity required to pay off earlier investors in a Ponzi-like manner. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. Using the CLO Trust and Panamanian shell entities to cover up losses. This case is being handled by the Offices Securities and Commodities Fraud Task Force. Mismarking multiple loans that were distressed (the Distressed Loans). From about 2007 to 2019, Hu conspired to defraud investors in IIG-managed funds, the Justice Department had alleged. 80b-6(1) and 80(b)-6 (2)], by, while acting as an investment adviser, using any means or instrumentalities of interstate commerce, or any means or instruments of transportation or communication in interstate commerce, or by the mails or any facility of any national securities exchange: As further set forth.

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