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Komfie Manalo, Opalesque Asia: Former hedge fund managers father-and-son Gabriel Bitran, 70, a former professor at the Massachusetts Institute of Technology, and Marco Bitran, 40, a Harvard Business School graduate, on Wednesday were sentenced to 45 months in prison after admitting to misleading investors into investing over $500m in their hedge fund firms.
In April 2012, the Securities and Exchange Commission (SEC) charged the Boston-based duo and their firms with securities fraud for misleading investors about their investment strategy and past performance. The SEC’s investigation found that Gabriel and Marco Bitran raised millions of dollars for their hedge funds through GMB Capital Management LLC and GMB Capital Partners LLC by falsely telling investors they had a lengthy track record of success based on actual trades using real money. The Bitrans agreed to be barred from the securities industry and pay a total of $4.8 million to settle the SEC’s charges.
In December 2014, the duo pleaded guilty to conspiring to mislead investors into investing more than $500 million in their fraudulent hedge fund business, according to an FBI release. In total, the Bitrans lost more than $140 million of GMB invest...................... To view our full article Click here
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