martin silver sentencing

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. They conspired to defraud IIG investors from approximately 2017 to 2019. Silver personally signed off on rent regulation and 421-a tax abatement legislation. The court said beginning in 2007, Hu and others engaged in various deceptive acts to cover up losses in its Trade Opportunities Fund (TOF). Some of our partners may process your data as a part of their legitimate business interest without asking for consent. . She previously worked as research analyst and editor at Lombardi Financial and has written for various websites including The Motley Fool, ValueWalk, IcannWiki and was a news writer/radio program producer at Nation Broadcasting Corporation. A federal judge has sentenced the co-founder of a private debt adviser to 12 years in prison for a $100 million Ponzi scheme he launched to help his firm cover up bad 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 All defendants in crime reports are presumed innocent until proven guilty. Marivic holds a BA in Mass Communications. Making sure that victims of federal crimes are treated with compassion, fairness and respect. 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. Ex-Head of RIA Sentenced to 12 Years in Prison Over $120M Scam, News (212) 637-2600, Human Trafficking & Child Sexual Exploitation, Department of Justice Harassment Prevention Resource, Download Martin Silver superseding information. <>stream IIG also advised the Venezuela Recovery Fund, a fund that managed the remaining assets of a failed Venezuelan bank. IIG purported to value the trade finance loans in the IIG Funds on a regular basis. 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. 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. 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. Hus lies caused millions of dollars of losses. Assistant U.S. 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. Authorities said IIG advertised itself as specializing in global trade financing, particularly in providing trade finance loans to small and medium-sized businesses. The co-founder of an investment advisory firm based in New York was sentenced Wednesday to 13 months behind bars for stealing more than $100 million from clients in a Ponzi-like scheme. IIG purported to value the trade finance loans in the IIG Funds on a regular basis. Former Managing Partner Of Manhattan Investment Advisory Firm Congrats! 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. The complaint, filed in the U.S. District Court for the Southern District of New York, charges Silver with violating the antifraud provisions of Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Sections 206(1) and 206(2) of the Investment Advisers Act of 1940. In addition to the 12 years of prison time, the judge also ordered Hu to serve three years of supervised release. Trade Financier Gets 12 Years For $129M Loan Fraud - Law360 Martin Silver, 65, of New Jersey pleaded guilty in April, admitting that he conspired to defraud investors in funds managed by his firm, International Investment Private Foundations VS Donor-Advised Funds, Valuation, Fundamentals, Momentum: The Case for Mid-Cap Value Stocks. Please click here for further information. Log in to keep reading or access research tools. (212) 637-2600, Human Trafficking & Child Sexual Exploitation, Department of Justice Harassment Prevention Resource. The managing partner and chief investment officer of a former New York RIA firm who was arrested in 2020 has been sentenced to 12 years in prison for his role in a Attorneys Drew Skinner, Negar Tekeei, and Alex Rossmiller are in charge of the prosecution. In March 2018, IIG reported to the SEC that it had approximately $373 million in assets under management. Securities and Exchange Commission v. Silver. Mismarking multiple loans that were distressed (the Distressed Loans). Readers deserve to know that real story. Todays sentence sends the message that brazen fraud does not pay and will be appropriately punished.. So Ordered (Signed by Judge Denise L. Cote on 4/16/2021) (js). Please click here for further information. 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. Silver In January 2021, Hu pleaded guilty to investment adviser fraud, securities fraud, and wire fraud offenses. %PDF-1.6 1700-05, 1932-43; GX 1522. And the 'Rule [], Working for Big Law can be highly remunerative and create some major opportunities in terms of training and remuneration . HU was a managing partner and the chief investment officer of IIG. One St. Andrews Plaza - New York, NY 10007, Nicholas Biase 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. 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. Second Wall Street exec admits to fraud | Investment Executive Mr. Williams praised Land The Job You Want Using the 'Rule of 5', Are You Best Suited to Big Law . IIG advertised itself as specializing in global trade financing, particularly in providing trade finance loans to small and medium-sized businesses. Generating liquidity by selling fraudulent loans to two new private IIG managed funds: GTFF and STFF. Continue with Recommended Cookies. IIG purported to value the trade finance loans in the IIG Funds on a regular basis. 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. Trade finance loans are used by small and medium-sized companies, typically exporters and importers, to facilitate international trade. Former Head Of N.Y. Advisor Sentenced To 12 Years In 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. The Feb. 1 judgment resolved all the issues in this action, except the Commissions claims for monetary relief against Hu, the documents said. 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. . % 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. Ms. Strauss praised the investigative work of the FBI and also thanked the SEC for its assistance. In this way, sentencing is a true partnership between the principles, which guide the judge, and the judges own sense of justice as see through the factual, legal and societal lens. This Office was one of the districts affected by the SolarWinds intrusion. 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. Public Service Announcement on Sexual Assault in Public Housing. . IIG purported to value the trade finance loans in its funds on a regular basis. Attorneys Drew Skinner, Negar Tekeei, and Alex Rossmiller are in charge of the prosecution. IIGs principal investment advisory strategy, including with respect to the IIG Funds, was investing in trade finance loans that it also originated. IIG advertised itself as specializing in global trade financing, particularly in providing trade finance loans to small and medium-sized businesses. . 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. Co-founder sentenced in evil valuation fraud Using the CLO Trust and Panamanian shell entities to cover up losses. USA Herald covers everything from breaking news to investigative journalism. 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. 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. The litigation was handled by Ms. Moilanen. The matter was supervised by Sheldon L. Pollock and Osman Nawaz. In March 2018, IIG reported to the SEC that it had about $373 million in assets under management. U.S. Attorney Damian Williams said: David Hu shirked his fiduciary responsibilities and defrauded IIG funds and investors for more than a decade. 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, 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. Advisory Firm Gets 12 Years For $120M Ponzi Scheme. 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. The consent submitted will only be used for data processing originating from this website. Hus lies caused millions of dollars of losses. WebMartin Silver *6170 Citibank may transmit payment electronically to the Commission, which will provide detailed ACH transfer/Fedwire instructions upon request. 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. Listen to free podcasts to get the info you need to solve business challenges! 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.. To view the purposes they believe they have legitimate interest for, or to object to this data processing use the vendor list link below. Your article was successfully shared with the contacts you provided. 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. Todays sentence sends the message that brazen fraud does not pay and will be appropriately punished.. Second Managing Partner Of Investment Advisory Firm IIG advertised itself as specializing in global trade financing, particularly in providing trade finance loans to small and medium-sized businesses. HU caused the creation of fake promissory notes and other paperwork to conceal the fraudulent nature of the loans to the Panamanian Shell Entities. 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. Subscribe to Justia's Free Newsletters featuring summaries of federal and state court opinions. SILVER was a managing partner and the chief operating officer of IIG. Sniper Trade finance loans are used by small and medium-sized companies, typically exporters and importers, to facilitate international trade. Defendant Martin Silver (Defendant) waives service of a summons and the complaint in this That parallel case was stayed since Sept. 21, 2020, until the conclusion of the Justice Department criminal case. In connection with his plea agreement, SILVER has also agreed to cooperate with the Governments ongoing investigation. 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). 2008-2023 - Shore News Media & Marketing Ltd. Co. All rights reserved. The SEC also fileda complaint in the same court against Hu in 2020 over the scheme. 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. sentenced The firm also advised the Venezuela Recovery Fund, a fund that managed the remaining assets of a failed Venezuelan bank. HU caused the creation of fake promissory notes and other paperwork to conceal the fraudulent nature of the loans to the Panamanian Shell Entities. His sentencing is pending, Williams said. 360 (S.D.N.Y.) HU pled guilty in January 2021 to investment adviser fraud, securities fraud, and wire fraud offenses. 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. IIG, it said, touted its risk control strategies and its robust credit review process for borrower. The sentencing judge, as the eyes and ears of the Rule of Law, is in the best position to fashion a fit and appropriate sentence. 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). Mismarking the value of multiple loans that had, in reality, defaulted (the Defaulted Loans). A foreign institutional investor provided $70 million as the seed investment for GTFF, and, later, $130 million as the seed investment for STFF. 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. Tr. JUDGMENT AS TO DEFENDANT MARTIN SILVER: The According to the 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). HU pled guilty in January 2021 to investment adviser fraud, securities fraud, and wire fraud offenses. 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. If you would like to change your settings or withdraw consent at any time, the link to do so is in our privacy policy accessible from our home page.. AI and the Legal Industry: Will AI Lead to Robot Lawyers? Silver Giving back to the community through a variety of venues & initiatives. Martin Silver, 65, of New Jersey pleaded guilty in April, admitting that he conspired to defraud investors in funds managed by his firm, International Investment Group LLC, by overvaluing distressed loans and creating bogus documents and fake loans that were used to hide losses. Fund Manager Gets 13 Months for $100 Million Ponzi Mr. Williams praised the investigative work of the FBI and also thanked the U.S. Securities and Exchange Commission for its assistance. According to authorities, all three funds were marketed to institutional investors, including pension funds, hedge funds and insurers. IIGs principal investment advisory strategy, including with respect to the IIG Funds, was investing in trade finance loans that it also originated. This case is being handled by the Offices Securities and Commodities Fraud Task Force. April 14, 2022 at 04:43 PM U.S. District Judge Alvin K. Hellerstein announced the sentence Monday and it will be formally imposed following the conclusion of forfeiture and restitution proceedings in the case, Williams said. 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). All rights reserved. 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. Jerry Lambe Oct 18th, 2021, 3:44 pm. We also report on politics on the State and National levels. Disclaimer: Justia Dockets & Filings provides public litigation records from the federal appellate and district courts. Create an alert to follow a developing story, keep current on a competitor, or monitor industry news. 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 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. 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. 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. Elon Musk's go-to Lawyer. Man found guilty of manslaughter, attempted first-degree murder Manage Settings Specifically, HU caused the creation of shell entities domiciled in Panama (Panamanian Shell Entities) that were controlled by an IIG nominee. 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.