A US District Court judge has awarded the Securities & Exchange Commission a summary judgment*, against the Venezuelan Ponzi schemer, Francisco Illaramendi, in the amount of $25m,as and for disgorgement of illicit gains, plus a penalty of $1m. the defendant already has a Restitution order filed against him, in his criminal case, of $ 370m.
Illarramendi, who will not be released from Federal Prison, until his sentence is completed, in 2024, ran two unregistered hedge funds, in the State of Connecticut, serving the pension fund of PDVSA, the Venezuelan oil monopoly. His trading was based upon the ability to earn a profit regarding the official versus unofficial value of Venezuelan Bolivars, in US Dollars, When he sustained a $5m loss, he began paying prior investments with funds from new ones, in the classic Ponzi scheme manner.
Readers who are interested in this story can find a number of articles on this blog, covering the Federal criminal case against Illarramendi. They may be access by using the blank white search box, at the top of the page, or the one on the right-hand side.
*Securities & Exchange Commission vs. Francisco Illarramendi, Case No.: 3:11-cv-78 -JBA (D Conn).
Chronicles of Monte Friesner - Financial Crime Analyst
Contributed by Kenneth Rijock - Financial Crime Consultant