Land The Job You Want Using the 'Rule of 5', Are You Best Suited to Big Law . IIG purported to value the trade finance loans in the IIG Funds on a regular basis. Stephen Yang. In connection with his plea agreement, SILVER has also agreed to cooperate with the Governments ongoing investigation. 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. 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). U.S. Attorney Damian Williams said: David Hu shirked his fiduciary responsibilities and defrauded IIG funds and investors for more than a decade. 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. 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. CTRL + SPACE for auto-complete. 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. Specifically, in or about December 2012, IIG became an investment adviser to an open-ended mutual fund marketed to retail investors (the Retail Fund). WebMartin Silver *6170 Citibank may transmit payment electronically to the Commission, which will provide detailed ACH transfer/Fedwire instructions upon request. Specifically, HU caused the creation of shell entities domiciled in Panama (Panamanian Shell Entities) that were controlled by an IIG nominee. USD basketball coach is sentenced in admissions scandal This case is being handled by the Offices Securities and Commodities Fraud Task Force. We and our partners use data for Personalised ads and content, ad and content measurement, audience insights and product development. . 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. Advisory Firm Gets 12 Years For $120M Ponzi Scheme. 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 An example of data being processed may be a unique identifier stored in a cookie. Man found guilty of manslaughter, attempted first-degree murder New Zealand Law Salary Levels - Who Earns Most? Click here to report information on Amazon warehouses. Sacramento mass shooting suspect released from prison early 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. In January 2021, Hu pleaded guilty to investment adviser 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. 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. Martin Silver had co-founded investment advisory firm in 1994, Co-conspirator David Hu was sentenced to 12-year term in July. IIG also advised the Venezuela Recovery Fund, a fund that managed the remaining assets of a failed Venezuelan bank. however there are also some major disadvantages of working in major law firms that can take their toll on younger lawyers.Money, stress, advancement, resources, networking . One St. Andrews Plaza - New York, NY 10007, Nicholas Biase Litigation Releases Martin 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, 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. 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. On Feb. 1, 2021, the court lifted the stay for the limited purpose of considering the parties motion for entry of a consent judgment against Hu partially resolving the case, and the court granted the motion that day, according to court documents. Asher Martin courtesy of State Attorneys Office. 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. Sentencing to the Starting Point: The Alberta Debate 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. He has not yet been sentenced. <>stream Mr. Williams praised Former Head Of N.Y. Advisor Sentenced To 12 Years In Former IIG Managing Partner David Hu gets 12 years jail time for WebThe Department does not have current information on parolees, individuals sentenced to probation, or those who have only been arrested and are awaiting trial or sentencing (and have not yet been sentenced to a prison term). SILVER pled guilty to investment adviser fraud, securities fraud, and wire fraud offenses in April 2021 and his sentencing is pending. JUDGMENT AS TO DEFENDANT MARTIN SILVER: The Securities and Exchange Commission having filed a Complaint and Defendant Martin Silver ("Defendant") having entered a general appearance; consented to the Court's jurisdiction over Defendant and the subject matter of this action; consented to entry of this Judgment; waived findings of fact and conclusions of law; and waived any right to appeal from this Judgment: 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). Silver These filings and docket sheets should not be considered findings of fact or liability, nor do they necessarily reflect the view of Justia. 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). Generating liquidity by selling fraudulent loans to two new private IIG managed funds: GTFF and STFF. Marivic has been a freelance writer/journalist for nearly 20 years. Using a collateralized loan obligation trust (the CLO Trust) to create liquidity through investments in fraudulent loans. My Office remains committed to policing investment advisers who seek to take advantage of their clients for personal and professional gain.. IIG purported to value the trade finance loans in the IIG Funds on a regular basis. USA Herald covers everything from breaking news to investigative journalism. sentenced Hu co-founded the Manhattan-based International Investment Group (IIG) in 1994. The consent submitted will only be used for data processing originating from this website. Updated. According to the Information and based on statements made and documents filed in federal court in this case: HU and co-conspirator MARTIN SILVER founded IIG in 1994. 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. 2023 USA Herald, 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). Then, HU caused the CLO Trust to enter into fake loan transactions with the Panamanian Shell Entities. 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. They overvalued portfolio assets and replaced non-performing assets with fictitious loans that were reported as if they were legitimate performing assets, among other deceptions. Click here to report information on Amazon warehouses. The amounts he must pay will be determined at a later date. HU caused the creation of fake promissory notes and other paperwork to conceal the fraudulent nature of the loans to the Panamanian Shell Entities. Second Wall Street exec admits to fraud | Investment Executive SILVER pled guilty to investment adviser fraud, securities fraud, and wire fraud offenses in April 2021 and his sentencing is pending. The scheme HU participated in involved, among other things: * * *. 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. HU pled guilty in January 2021 to investment adviser fraud, securities fraud, and wire fraud offenses. SanctuaryWealth Picks Up $1B Advisory Team From Merrill, Friend of Warren Buffett Unpacks His Investing Wisdom, Cetera Adds Direct, Custom Indexing to Advisory Platform, 9 Trends That Sum Up the State of RIAs: Cerulli, Wells Fargo Appeals Arb Ruling Struck Down in Court. 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 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. (AKH). 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. These Distressed Loans included, for example, loans for which the borrowers had missed multiple scheduled payments. Listen to free podcasts to get the info you need to solve business challenges! 1700-05, 1932-43; GX 1522. This case is being handled by the Offices Securities and Commodities Fraud Task Force. This Office was one of the districts affected by the SolarWinds intrusion. Mismarking multiple loans that were distressed (the Distressed Loans). Mismarking multiple loans that were distressed (the Distressed Loans). 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. Convicted at his second trial, Silver was sentenced in 2018 to six and a half years in prison. He began serving his sentence in 2020, despite pleas from his lawyers about his health problems and the COVID-19 pandemic. It can be hard for any company to withstand a flurry of lawsuits, but for a restaurant chain like Long John Silver's, that litigation can be tough to recover from especially when the CALL IS COMING FROM INSIDE THE HOUSE. 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. 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. 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. 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. (212) 637-2600, Human Trafficking & Child Sexual Exploitation, Department of Justice Harassment Prevention Resource, Download Martin Silver superseding information. Mr. Silver cut a diminished figure in court, staggering in a few minutes before his sentencing wearing a dark, loosely fitted suit, a blue surgical mask and a pair of clear, disposable vinyl gloves. In addition to the prison sentence, HU, 64, of West Orange, New Jersey, was ordered to serve three years of supervised release. 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. U.S. Attorney Damian Williams said: David Hu shirked his fiduciary responsibilities and defrauded IIG funds and investors for more than a decade. Sheldon Silver arrives at Manhattan federal court on Tuesday. Trade finance loans are used by small and medium-sized companies, typically exporters and importers, to facilitate international trade. 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. 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. 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. In connection with his plea agreement, SILVER has also agreed to cooperate with the Governments ongoing investigation. His sentencing is pending, Williams said. 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. U.S. District Judge Alvin Hellerstein issued the sentence against Hu on Monday. Silver David Hu, who had co-founded SEC-registered, Manhattan-based International Investment Group, pleaded guilty in January 2021 to investment advisor fraud, securities fraud and wire fraud offenses. WebMARTIN 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 In addition to the prison sentence, Hu, 64, of West Orange, New Jersey, was ordered to serve three years of supervised release, according to Williams. Public Service Announcement on Sexual Assault in Public Housing. IIG purported to value the trade finance loans in the IIG Funds on a regular basis. Trade finance loans are used by small and medium-sized companies, typically exporters and importers, to facilitate international trade. 27, 2023: Trends Investments Inc. et al. 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. Readers deserve to know that real story. 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. R Civ. Todays sentence sends the message that brazen fraud does not pay and will be appropriately punished.. Generating liquidity by selling fraudulent loans to two new private IIG managed funds: GTFF and STFF. Sentencing before Judge Hellerstein has been scheduled for November 16, 2021, at 11:00 a.m. 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. 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. Inducing a retail mutual fund to invest in a fictitious $6 million loan. IIGs principal investment advisory strategy, including with respect to the IIG Funds, was investing in trade finance loans that it also originated. Using the CLO Trust and Panamanian shell entities to cover up losses. Or Small? You Say Terrible Error In Judgment, Prosecutors Say Ripped Off Mismarking the value of multiple loans that had, in reality, defaulted (the Defaulted Loans). Will AI End The Billable Hour? Ms. Strauss praised the investigative work of the FBI and also thanked the SEC for its assistance. All defendants in crime reports are presumed innocent until proven guilty. Silver reaped about $4 million from a pair of illicit schemes that saw him convicted in two Manhattan Federal Court trials that ultimately got him a seven-year prison sentence. 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. IIG advertised itself as specializing in global trade financing, particularly in providing trade finance loans to small and medium-sized businesses. 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. 1602-1605, 1749-53, 1783-86. The Feb. 1 judgment resolved all the issues in this action, except the Commissions claims for monetary relief against Hu, the documents said. The night sky in May will be filled with exciting sights. Tr. 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). 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. 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. 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. Here are some points for and against, LegalTech: Legal Documentation Automation, Clifford Chance Elect 32 New Partners and Move Closer To Female Equity. This case is being handled by the Offices Securities and Commodities Fraud Task Force. David Hu shirked his fiduciary responsibilities and defrauded IIG funds and investors for more than a decade, Williams said in a news release. Co-founder sentenced in evil valuation fraud Using the CLO Trust and Panamanian shell entities to cover up losses. 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. Venus and Jupiter begin the We are The People's Media. Trade Financier Gets 12 Years For $129M Loan Fraud - Law360 (212) 637-2600, Human Trafficking & Child Sexual Exploitation, Department of Justice Harassment Prevention Resource. 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). Trending Stories - The biglaw salary scale . That parallel case was stayed since Sept. 21, 2020, until the conclusion of the Justice Department criminal case. 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. In March 2018, IIG reported to the SEC that it had approximately $373 million in assets under management. . 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. Fund Manager Gets 13 Months for $100 Million Ponzi HU was a managing partner and the chief investment officer of IIG. 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.