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). Mr. Williams praised a};@_5,}V$dYOKl'[>r. 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. . In connection with his plea agreement, SILVER has also agreed to cooperate with the Governments ongoing investigation. He admitted to operating a Ponzi-like scheme to steal money from IIG investment advisory fund clients and investors for ten years. Listen to free podcasts to get the info you need to solve business challenges! The judge says: 12 years in jail. Jon Shazar Apr 12, 2022 Here is one way to describe what International Investment Groups David Hu did alongside his partner at 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 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. 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. Silver Sheldon Silver arrives at Manhattan federal court on Tuesday. Congrats! Elon Musk's go-to Lawyer. _2J++IWLWbh?gQ?}^\u{MbAJ USA Herald covers everything from breaking news to investigative journalism. Todays sentence sends the message that brazen fraud does not pay and will be appropriately punished.. Sentencing before Judge Hellerstein has been scheduled for November 16, 2021, at 11:00 a.m. . 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. Legal marketing tips for 2023 . Silver begged for mercy ahead of his sentencing in a letter to the judge, saying he was "broken-hearted" he had caused people to lose faith in government. Using the CLO Trust and Panamanian shell entities to cover up losses. Second Managing Partner Of Investment Advisory Firm In offering memoranda and communications with investors, IIG advertised strict risk controls, such as promises to use diligence to carefully select borrowers or issuers with trusted management and marketable assets, and portfolio concentration limits based on borrower, developing country, and industry. She strictly adheres to the ethical standards in journalism. Both Hu and Silver have also reached settlements with the U.S. Securities and Exchange Commission in parallel 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. HU was a managing partner and the chief investment officer of IIG. 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 scheme HU participated in involved, among other things: * * *. Using a collateralized loan obligation trust (the CLO Trust) to create liquidity through investments in fraudulent loans. The court said beginning in 2007, Hu and others engaged in various deceptive acts to cover up losses in its Trade Opportunities Fund (TOF). According to the allegations contained in the Information and based on statements made in Manhattan federal court: SILVER and a co-conspirator (CC-1) founded IIG in 1994. Former Assembly Speaker Sheldon Silver was WebSilver pled guilty in April 2021. On March 23, 2023, the U.S. District Court for the Southern District of New York entered a final consent judgment against Martin Silver, the co-founder of International Investment Group (IIG), a formerly registered investment adviser, Silver sentencing A foreign institutional investor provided $70 million as the seed investment for GTFF, and, later, $130 million as the seed investment for STFF. Write CSS OR LESS and hit save. David Hu shirked his fiduciary responsibilities and defrauded IIG funds and investors for more than a decade, Williams said in a news release. The scheme HU participated in involved, among other things: * * *. Subscribe to Justia's Free Newsletters featuring summaries of federal and state court opinions. Specifically, in or about December 2012, IIG became an investment adviser to an open-ended mutual fund marketed to retail investors (the Retail Fund). Leave a Comment / BigLaw Pay, Power Firms / By, Lawyer and legal consultant Emma Haywood, who produces the 4 Day Lawyer as a monthly newsletter, wrote recently for the NZ Law Gazette about the move towards the 4 day work week for lawyers. He has not yet been sentenced. 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. These Distressed Loans included, for example, loans for which the borrowers had missed multiple scheduled payments. State of the US legal market . Fund Manager Gets 13 Months for $100 Million Ponzi NY Fund Manager Gets 13 Months for $100 Million Ponzi Fraud (1) 2 0 obj IIG advertised itself as specializing in global trade financing, particularly in providing trade finance loans to small and medium-sized businesses. Land The Job You Want Using the 'Rule of 5', Are You Best Suited to Big Law . sentenced In connection with his plea agreement, SILVER has also agreed to cooperate with the Governments ongoing investigation. Marivic holds a BA in Mass Communications. U.S. District Judge Alvin K. Hellerstein announced todays sentence, which will be formally imposed following the conclusion of forfeiture and restitution proceedings in the case. And the 'Rule [], Working for Big Law can be highly remunerative and create some major opportunities in terms of training and remuneration . Co-founder sentenced in evil valuation fraud In addition to the prison sentence, HU, 64, of West Orange, New Jersey, was ordered to serve three years of supervised release. In March 2018, IIG reported to the SEC that it had approximately $373 million in assets under management. Authorities said IIG advertised itself as specializing in global trade financing, particularly in providing trade finance loans to small and medium-sized businesses. Then, HU caused the CLO Trust to enter into fake loan transactions with the Panamanian Shell Entities. April 13, 2022 (212) 637-2600, Human Trafficking & Child Sexual Exploitation, Department of Justice Harassment Prevention Resource, Download Martin Silver superseding information. 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. 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. In March 2018, IIG reported to the SEC that it had about $373 million in assets under management. Mr. Williams praised the investigative work of the FBI and also thanked the U.S. Securities and Exchange Commission for its assistance. 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. Manage Settings WebMARTIN SILVER, Defendant. The military court eventually convicted Martin on one count of mishandling classified information and one count of assault on a child. IIGs principal investment advisory strategy, including with respect to the IIG Funds, was investing in trade finance loans that it also originated. 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. 27, 2023: Trends Investments Inc. et al. Using the CLO Trust and Panamanian shell entities to cover up losses. 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. Click here to report information on Amazon warehouses. IIG advertised itself as specializing in global trade financing, particularly in providing trade finance loans to small and medium-sized businesses. %PDF-1.6 Please click here for further information. Silver officially opposed the relocation of a methadone clinic that was proposed to be located close to one of Glenwood's rental buildings in Silver's district. Damian Williams, United States Attorney for the Southern District of New York, announced that DAVID HU, former managing partner and chief investment officer of the Manhattan-based investment advisory firm International Investment Group (IIG), was sentenced today to 12 years in prison for his role in an over $120 million scheme to defraud IIGs clients and investors. HU then directed that the proceeds from the fraudulently induced New Loan be transferred into Borrower-1s account, effectively reimbursing the account for the earlier $6 million transfer to the Retail Fund. Jerry Lambe Oct 18th, 2021, 3:44 pm. We also report on politics on the State and National levels. 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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. 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). Get alerted any time new stories match your search criteria. . IIGs principal investment advisory strategy, including with respect to the IIG Funds, was investing in trade finance loans that it also originated. In addition to the prison sentence, HU, 64, of West Orange, New Jersey, was ordered to serve three years of supervised release. The SEC appreciates the assistance of the U.S. Attorney's Office for the Southern District of New York and the Federal Bureau of Investigation. 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. On March 23, 2023, the U.S. District Court for the Southern District of New York entered a final consent judgment against Martin Silver, the co-founder of International Investment Group (IIG), a formerly registered investment adviser, enjoining him from violating the antifraud provisions of the federal securities laws. 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. In offering memoranda and communications with investors, IIG advertised strict risk controls, such as promises to use diligence to carefully select borrowers or issuers with trusted management and marketable assets, and portfolio concentration limits based on borrower, developing country, and industry. Sacramento mass shooting suspect released from prison early The night sky in May will be filled with exciting sights. This case is being handled by the Offices Securities and Commodities Fraud Task Force. 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 R Civ. HU pled guilty in January 2021 to investment adviser fraud, securities fraud, and wire fraud offenses. For her, integrity is everything. 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). 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. This case is being handled by the Offices Securities and Commodities Fraud Task Force. SILVER pled guilty to investment adviser fraud, securities fraud, and wire fraud offenses in April 2021 and his sentencing is pending. Attorneys Drew Skinner, Negar Tekeei, and Alex Rossmiller are in charge of the prosecution. In or about March 2017, HU caused approximately $6 million to be transferred into an account associated with the Argentine Borrower from the account of a different borrower (Borrower-1), and further directed the funds from Borrower-1s account to pay off the debt owed by the Argentine Borrower to the Retail Fund. His sentence will be formally enforced following the conclusion of the forfeiture and restitution proceeding in the case. The firm also advised the Venezuela Recovery Fund, a fund that managed the remaining assets of a failed Venezuelan bank. WebView the profiles of people named Martin Silver. IIG advertised itself as specializing in global trade financing, particularly in providing trade finance loans to small and medium-sized businesses. 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. IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant is permanently restrained and enjoined from violating Sections 206(1) and 206(2) of the Investment Advisers Act of 1940 (the Advisers Act) [15 U.S.C. In March 2018, IIG reported to the SEC that it had approximately $373 million in assets under management. 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. SILVER was a managing partner and the chief operating officer of IIG. Sheldon Silver gets 12 years in prison for corruption Specifically, HU caused the creation of shell entities domiciled in Panama (Panamanian Shell Entities) that were controlled by an IIG nominee. 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 final judgment orders disgorgement of $2,306,856, representing Silver's ill-gotten gains, and prejudgment interest of $243,403.98, and that disgorgement shall be deemed satisfied by the restitution order entered against him in the parallel criminal proceeding, United States v. Hu, et al., 20 Cr. Silver personally signed off on rent regulation and 421-a tax abatement legislation. % Please try again. Click here for information on the investigation into the Mount Vernon Police Department. Readers deserve to know that real story. Austin Belcak runs a million-strong network called 'Cultivated Culture' and provides advice on landing the job you really want (as distinct from the one you have presently). Tr. These Distressed Loans included, for example, loans for which the borrowers had missed multiple scheduled payments. From about 2007 to 2019, Hu conspired to defraud investors in IIG-managed funds, the Justice Department had alleged. Jacqueline Sergeant. Attorneys Drew Skinner, Negar Tekeei, and Alex Rossmiller are in charge of the prosecution. 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). Hu co-founded the Manhattan-based International Investment Group (IIG) in 1994. 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 U.S. Attorney said from about 2007 to 2019, Hu and co-conspirator Martin Silver, also a co-founder of IIG, engaged in the scheme that defrauded investors in IIG-managed funds by among other things, overvaluing distressed loans held by the IIG Funds; falsifying paperwork to create a series of fake loans that were classified, fraudulently, as positively performing loans, and to otherwise hide losses; 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 in a Ponzi-like manner..
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