Second Managing Partner Of Investment Advisory Firm Specifically, in or about December 2012, IIG became an investment adviser to an open-ended mutual fund marketed to retail investors (the Retail Fund). FINAL JUDGMENT AS TO DEFENDANT In or about February 2017, a borrower (the Argentine Borrower) had failed to pay the principal on an approximately $6 million loan (Loan-1) in which the Retail Fund had invested and which was nearing its maturity date. MARTIN SILVER, 63, of New Jersey, pled guilty to one count of conspiracy to commit investment adviser fraud, securities fraud, and wire fraud, which carries a maximum sentence of five years in prison; one count of securities fraud, which carries a maximum sentence of 20 years in prison, and one count of wire fraud, which carries a maximum sentence of 20 years in prison. From approximately 2007 to 2019, HU 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. Assistant U.S. A Florida man is facing life in prison after a jury took less than 15 minutes to find him guilty of murder and arson following a three-day trial. The litigation was handled by Ms. Moilanen. The matter was supervised by Sheldon L. Pollock and Osman Nawaz. Mismarking multiple loans that were distressed (the Distressed Loans). sentenced She strictly adheres to the ethical standards in journalism. LawFuel is a law news and jobs network founded in 2001. U.S. District Judge Alvin Hellerstein issued the sentence against Hu on Monday. <>stream Second Managing Partner Of Investment Advisory Firm Pleads Venus and Jupiter begin the We are The People's Media. Mismarking the value of multiple loans that had, in reality, defaulted (the Defaulted Loans). The SEC also fileda complaint in the same court against Hu in 2020 over the scheme. 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. 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. According to the SEC's complaint, from October2013 to at least July 2018, Silver, defrauded IIG's investment advisory clients by, among other things, grossly overvaluing the assets in IIG's flagship hedge fund. 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. Updated. Last year, a bunch of companies in the UK tried it out and found that they didnt lose any money using [], Salaries for New Zealand lawyers salary survey conducted by recruitment firm Nicholas Scott shows a slightly higher pay scale for Wellington lawyers over Auckland, with higher minimum levels at the commencement stages, although law firm equity partners shown in the survey have substantially higher annual earnings for Auckland partners compared to their capital counterparts ($285,000+ [], This guy provides the 'Rule of 5' for you to apply to get the job offers that let you actually choose the job you want. IIG purported to value the trade finance loans in the IIG Funds on a regular basis. In April 2021, Silver also pleaded guilty to investment advisor fraud, securities fraud and wire fraud offenses. Trade finance loans are used by small and medium-sized companies, typically exporters and importers, to facilitate international trade. Skywatchers: Mays Full Flower Supermoon will be followed by a lunar South Carolina, Texas See New Mass Shootings. Hu mismarked millions of dollars of loan assets, falsified paperwork to create fake loans, sold overvalued and fake loans, used the proceeds from those sales to pay off earlier investors, and falsified paperwork to deceive auditors and avoid scrutiny. SILVER pled guilty to investment adviser fraud, securities fraud, and wire fraud offenses in April 2021 and his sentencing is pending. 27, 2023: Trends Investments Inc. et al. Sniper 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, the release noted. Please click here for further information. One St. Andrews Plaza - New York, NY 10007, Nicholas Biase Ex-Head of RIA Sentenced to 12 Years in Prison Over $120M Scam, News Subscribe to Justia's Free Newsletters featuring summaries of federal and state court opinions. . IIG purported to value the trade finance loans in the IIG Funds on a regular basis. Creating fictitious loans in order to hide the losses resulting from the Defaulted Loans, including from auditors reviewing TOFs financials, by removing the Defaulted Loans from the TOF portfolio and replacing them with tens of millions of dollars in fictitious loans to purported borrowers in foreign countries (the Fake Loans). 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. 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 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. Create an alert to follow a developing story, keep current on a competitor, or monitor industry news. This case is being handled by the Offices Securities and Commodities Fraud Task Force. 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). Please try again. Former IIG Managing Partner David Hu gets 12 years jail time for U.S. Attorneys Office for the Southern District of New York, CDC warns of meningococcal disease outbreak affecting gay, bisexual men in Florida, Chipotle Turns to Automation to Offset Staff Shortages, Skywatchers: Mays Full Flower Supermoon will be followed by a lunar eclipse, Rare 12-foot Sicklefin Devil ray spotted off US East Coast, Great Britain CMA stalemates Microsoft-Activision Blizzard deal. 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). Write CSS OR LESS and hit save. Disclaimer: Justia Dockets & Filings provides public litigation records from the federal appellate and district courts. 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. Jerry Lambe Oct 18th, 2021, 3:44 pm. David Hu, the former managing partner of International Investment Group (IIG) was sentenced to 12 years in prison for his role in defrauding investors of more than $120 million in a Ponzi-like scheme. Finally, under the guise of the fake loan transactions with the Panamanian Shell Entities, the CLO Trust disbursed funds that HU diverted to TOF in order to pay off TOFs various debts and obligations. Here are some points for and against, LegalTech: Legal Documentation Automation, Clifford Chance Elect 32 New Partners and Move Closer To Female Equity. No portions of this website may be reproduced, retransmitted, copied, or republished without expressed written consent from Shore News Media & Marketing, LLC. IIG also advised the Venezuela Recovery Fund (VRF), a fund that managed the remaining assets of a failed Venezuelan bank (VRF, together with TOF, GTFF, and STFF, the IIG Funds). This case is being handled by the Offices Securities and Commodities Fraud Task Force. My Office remains committed to policing investment advisers who seek to take advantage of their clients for personal and professional gain.. Asher Martin courtesy of State Attorneys Office. His sentence will be formally enforced following the conclusion of the forfeiture and restitution proceeding in the case. Sacramento mass shooting suspect released from prison early Assistant U.S. Marivic holds a BA in Mass Communications. Its 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. It also claimed that its finance loans were secured by collateral, such as the underlying traded goods, assets held by the borrowers, or expected payments by third parties.. 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. MARTIN SILVER, 63, of New Jersey, pled guilty to one count of conspiracy to commit investment adviser fraud, securities fraud, and wire fraud, which carries a They conspired to defraud IIG investors from approximately 2017 to 2019. He has not yet been sentenced. Ex-Head of RIA Sentenced to 12 Years in Prison Over $120M Scam IIG, it said, touted its risk control strategies and its robust credit review process for borrower. To further conceal the fraudulent nature of the New Loan, HU caused the creation of forged documents to make it appear as though the New Loan was a legitimate loan to the Argentine Borrower. Silver sentencing Sheldon Silver arrives at Manhattan federal court on Tuesday. Sentencing before Judge Hellerstein has been scheduled for November 16, 2021, at 11:00 a.m. IIG advertised itself as specializing in global trade financing, particularly in providing trade finance loans to small and medium-sized businesses. According to authorities, all three funds were marketed to institutional investors, including pension funds, hedge funds and insurers. 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 defrauding clients and investors in a more than $120 million Ponzi scheme, according to the U.S. Attorney for the Southern District of New York. The SEC previously charged IIG with fraud on November 21, 2019, and revoked IIG's registration as an investment adviser on November26, 2019. On March 30, 2020, the SEC obtained a final judgment on consent enjoining IIG from violating the antifraud provisions of the federal securities laws and requiring IIG to pay more than $35 million in disgorgement and prejudgment interest. Todays sentence sends the message that brazen fraud does not pay and will be appropriately punished.. Martin Silver had co-founded investment advisory firm in 1994, Co-conspirator David Hu was sentenced to 12-year term in July. Attorneys Drew Skinner, Negar Tekeei, and Alex Rossmiller are in charge of the prosecution. The amounts he must pay will be determined at a later date. 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 U.S. Department of Justice (DoJ) announced that Martin Silver, former managing partner and chief operating officer at New Yorks International Investment 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). First Name Email Address: His sentence will be formally enforced following the conclusion of the forfeiture and restitution proceeding in the case. 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. IIG and, in turn, SILVER, 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. }-|4u5On>M4OW Listen to free podcasts to get the info you need to solve business challenges! To further conceal the fraudulent nature of the New Loan, HU caused the creation of forged documents to make it appear as though the New Loan was a legitimate loan to the Argentine Borrower. . According to the information filed against Hu by the Justice Department in 2020, as well as statements made and documents filed inU.S. District Court for the Southern District of New York, Hu and co-conspirator Martin Silver, who founded IIG together in 1994, provided investment management and advisory services through the firm, including for three private funds that it operated: IIG Trade Opportunities Fund, IIG Global Trade Finance Fund, and IIG Structured Trade Finance Fund. SILVER pled guilty to investment adviser fraud, securities fraud, and wire fraud offenses in April 2021 and his sentencing is pending. Tr. Tr. 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 David Hu shirked his fiduciary responsibilities and defrauded IIG funds and investors for more than a decade, Williams said in a news release. IIGs principal investment advisory strategy, including with respect to the IIG Funds, was investing in trade finance loans that it also originated. (AKH). SILVER pled guilty to investment adviser fraud, securities fraud, and wire fraud offenses in April 2021 and his sentencing is pending. Trade Financier Gets 12 Years For $129M Loan Fraud - Law360 In one instance, when IIG learned that a South American coffee producer had defaulted on a $30 million loan by TOF, Hu and Silver, fearing if it was disclosed that existing investors would flee the fund and that ongoing fundraising efforts would suffer, knowingly incorrectly valued the loan at par plus accrued interest on the TOFs books. SILVER pled guilty to investment adviser fraud, securities fraud, and wire fraud offenses in April 2021 and his sentencing is pending. IIGs principal investment advisory strategy, including with respect to the IIG Funds, was investing in trade finance loans that it also originated. And the 'Rule [], Working for Big Law can be highly remunerative and create some major opportunities in terms of training and remuneration . H2 Attorneys Drew Skinner, Negar Tekeei, and Alex Rossmiller are in charge of the prosecution. In addition to the 12 years of prison time, the judge also ordered Hu to serve three years of supervised release. Using a collateralized loan obligation trust (the CLO Trust) to create liquidity through investments in fraudulent loans. Share & Print. Smiley Martin has a criminal history dating back to 2013, including his most recent sentencing in 2018 to 10 years in prison for domestic violence and assault with great bodily injury. 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. The scheme HU participated in involved, among other things: * * *. WebView the profiles of people named Martin Silver. Jacqueline Sergeant. %PDF-1.6 Victoria Bosah 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 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. You are now logged in. In March 2018, IIG reported to the SEC that it had approximately $373 million in assets under management. Private Foundations VS Donor-Advised Funds, Valuation, Fundamentals, Momentum: The Case for Mid-Cap Value Stocks. . In 2021, while silver made a slightly higher high at $30.35, the trading band was narrower as the years low was at $21.41. In addition to the prison sentence, Hu was ordered to serve three years of supervised release. The managing partner andchief investment officerof a former New York RIA firm who was arrested in 2020 has been sentenced to 12 years in prison for his role in a Ponzi-like scheme that defrauded his firms clients out of more than $120 million, according to Damian Williams, U.S. Attorney for the Southern District of New York. Using a collateralized loan obligation trust (the CLO Trust) to create liquidity through investments in fraudulent loans. Trade finance loans are used by small and medium-sized companies, typically exporters and importers, to facilitate international trade.
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