This case is being handled by the Offices Securities and Commodities Fraud Task Force. The SEC expected that, after Hus sentencing occurred, the parties would discuss a settlement of the Commissions claims for monetary relief. His accomplice, Malvo, was sentenced to life imprisonment without the possibility of parole. Todays sentence sends the message that brazen fraud does not pay and will be appropriately punished.. One St. Andrews Plaza - New York, NY 10007, Securities, Commodities, & Investment Fraud, James Margolin, Nicholas Biase For her, integrity is everything. 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. 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. Attorneys Drew Skinner, Negar Tekeei, and Alex Rossmiller are in charge of the prosecution. Ms. Strauss praised the investigative work of the FBI and also thanked the SEC for its assistance. Inducing a retail mutual fund to invest in a fictitious $6 million loan. 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. The court also plans to impose restitution to victims and forfeiture of the proceeds. Updated. 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. 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 This Office was one of the districts affected by the SolarWinds intrusion. 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. Private Foundations VS Donor-Advised Funds, Valuation, Fundamentals, Momentum: The Case for Mid-Cap Value Stocks. Accounting and Auditing Enforcement Releases. Readers deserve to know that real story. According to the Continue with Recommended Cookies. Ex-Head of RIA Sentenced to 12 Years in Prison Over $120M Scam, News Assistant U.S. SILVER pled guilty to investment adviser fraud, securities fraud, and wire fraud offenses in April 2021 and his sentencing is pending. . 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. Asher Martin courtesy of State Attorneys Office. Inducing a retail mutual fund to invest in a fictitious $6 million loan. Mr. Williams praised the investigative work of the FBI and also thanked the U.S. Securities and Exchange Commission for its assistance. % U.S. Attorney Damian Williams said: David Hu shirked his fiduciary responsibilities and defrauded IIG funds and investors for more than a decade. 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. IIG purported to value the trade finance loans in the IIG Funds on a regular basis. 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. She strictly adheres to the ethical standards in journalism. In March 2018, IIG reported to the SEC that it had about $373 million in assets under management. 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. HU was a managing partner and the chief investment officer of IIG. The consent submitted will only be used for data processing originating from this website. In connection with his plea agreement, SILVER has also agreed to cooperate with the Governments ongoing investigation. This case is being handled by the Offices Securities and Commodities Fraud Task Force. VIII. 1700-05, 1932-43; GX 1522. 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. SILVER pled guilty to investment adviser fraud, securities fraud, and wire fraud offenses in April 2021 and his sentencing is pending. 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, Will AI End The Billable Hour? . Both Hu and Silver have also reached settlements with the U.S. Securities and Exchange Commission in parallel 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.. Mismarking the value of multiple loans that had, in reality, defaulted (the Defaulted Loans). 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. they all need to be considered. One St. Andrews Plaza - New York, NY 10007, Nicholas Biase WebMartin Silver *6170 Citibank may transmit payment electronically to the Commission, which will provide detailed ACH transfer/Fedwire instructions upon request. Trending Stories - The biglaw salary scale . Using the CLO Trust and Panamanian shell entities to cover up losses. 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. Congrats! Legal marketing tips for 2023 . Making sure that victims of federal crimes are treated with compassion, fairness and respect. SILVER pled guilty to investment adviser fraud, securities fraud, and wire fraud offenses in April 2021 and his sentencing is pending. US District Judge Alvin Hellerstein gave Silver a much shorter sentence than the 12-year term given to his co-conspirator, David Hu.The judge AI-powered legal analytics, workflow tools and premium legal & business news. 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. (212) 637-2600, Human Trafficking & Child Sexual Exploitation, Department of Justice Harassment Prevention Resource. In connection with his plea agreement, SILVER has also agreed to cooperate with the Governments ongoing investigation. <>stream IIGs principal investment advisory strategy, including with respect to the IIG Funds, was investing in trade finance loans that it also originated. 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. WebMARTIN SILVER, Defendant. The SEC-registered investment adviser provided investment management and advisory services, including for three private funds that it operated: the IIG Trade Opportunities Fund N.V., the IIG Global Trade Finance Fund, Ltd., and the IIG Structured Trade Finance Fund, Ltd. Pursuant to Fed. 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. Join Facebook to connect with Martin Silver and others you may know. According to authorities, all three funds were marketed to institutional investors, including pension funds, hedge funds and insurers. We and our partners use cookies to Store and/or access information on a device. 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. April 14, 2022 at 04:43 PM Its 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. It also claimed that its finance loans were secured by collateral, such as the underlying traded goods, assets held by the borrowers, or expected payments by third parties.. IIG advertised itself as specializing in global trade financing, particularly in providing trade finance loans to small and medium-sized businesses. In March 2018, IIG reported to the SEC that it had approximately $373 million in assets under management. The military court eventually convicted Martin on one count of mishandling classified information and one count of assault on a child. 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). New Zealand Law Salary Levels - Who Earns Most? IIG, it said, touted its risk control strategies and its robust credit review process for borrower. 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. State of the US legal market . The former managing partner and chief investment officer of a New York-based investment advisory firm has been sentenced to 12 years in prison for his role in The firm 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 . Please try again. IIGs principal investment advisory strategy, including with respect to the IIG Funds, was investing in trade finance loans that it also originated. 1602-1605, 1749-53, 1783-86. Elon Musk's go-to Lawyer. My Office remains committed to policing investment advisers who seek to take advantage of their clients for personal and professional gain.. 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. 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. 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). SILVER was a managing partner and the chief operating officer of IIG. Manage Settings In March 2018, IIG reported to the SEC that it had approximately $373 million in assets under management. Sentencing before Judge Hellerstein has been scheduled for November 16, 2021, at 11:00 a.m. 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. SILVER pled guilty to investment adviser fraud, securities fraud, and wire fraud offenses in April 2021 and his sentencing is pending. 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. Specifically, HU caused the creation of shell entities domiciled in Panama (Panamanian Shell Entities) that were controlled by an IIG nominee. Giving back to the community through a variety of venues & initiatives. The overvaluation of the loan materially inflated the net asset value reported to TOF investors. P 54(b), there is no just reason for delay in the entry of Judgment. We also report on politics on the State and National levels. 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). Attorneys Drew Skinner, Negar Tekeei, and Alex Rossmiller are in charge of the prosecution. The SEC also fileda complaint in the same court against Hu in 2020 over the scheme. 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. 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. Martin Silver had co-founded investment advisory firm in 1994, Co-conspirator David Hu was sentenced to 12-year term in July. USA Herald covers everything from breaking news to investigative journalism. Some of our partners may process your data as a part of their legitimate business interest without asking for consent. 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.. Ms. Strauss praised the investigative work of the FBI and also thanked the SEC for its assistance. (212) 637-2600, Human Trafficking & Child Sexual Exploitation, Department of Justice Harassment Prevention Resource, Download Martin Silver superseding information. Mismarking multiple loans that were distressed (the Distressed Loans). 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. _2J++IWLWbh?gQ?}^\u{MbAJ In March 2018, IIG reported to the SEC that it had approximately $373 million in assets under management. 360 (S.D.N.Y.) Specifically, HU caused the creation of shell entities domiciled in Panama (Panamanian Shell Entities) that were controlled by an IIG nominee. 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. 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. IIG advertised itself as specializing in global trade financing, particularly in providing trade finance loans to small and medium-sized businesses. }-|4u5On>M4OW HU pled guilty in January 2021 to investment adviser fraud, securities fraud, and wire fraud offenses. The former managing partner and chief investment officer of a New York-based investment advisory firm has been sentenced to 12 years in prison for his role in defrauding clients and investors in a more than $120 million Ponzi scheme, according to the U.S. Attorney for the Southern District of New York. We and our partners use data for Personalised ads and content, ad and content measurement, audience insights and product development. Giving back to the community through a variety of venues & initiatives. Last year, a bunch of companies in the UK tried it out and found that they didnt lose any money using [], Salaries for New Zealand lawyers salary survey conducted by recruitment firm Nicholas Scott shows a slightly higher pay scale for Wellington lawyers over Auckland, with higher minimum levels at the commencement stages, although law firm equity partners shown in the survey have substantially higher annual earnings for Auckland partners compared to their capital counterparts ($285,000+ [], This guy provides the 'Rule of 5' for you to apply to get the job offers that let you actually choose the job you want. 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. . 27, 2023: Trends Investments Inc. et al. This case is being handled by the Offices Securities and Commodities Fraud Task Force. Hus lies caused millions of dollars of losses. 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. IIG advertised itself as specializing in global trade financing, particularly in providing trade finance loans to small and medium-sized businesses. . Jacqueline Sergeant. In March 2018, IIG reported to the SEC that it had approximately $373 million in assets under management. From about 2007 to 2019, Hu conspired to defraud investors in IIG-managed funds, the Justice Department had alleged. These Distressed Loans included, for example, loans for which the borrowers had missed multiple scheduled payments. Authorities said IIG advertised itself as specializing in global trade financing, particularly in providing trade finance loans to small and medium-sized businesses. 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. Investments in TOF, STFF, and GTFF were marketed by IIG to institutional investors, such as pension funds, hedge funds, and insurers. The amounts he must pay will be determined at a later date. CTRL + SPACE for auto-complete. 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 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. April 13, 2022 WebRelease No. Trade finance loans are used by small and medium-sized companies, typically exporters and importers, to facilitate international trade. IIG advertised itself as specializing in global trade financing, particularly in providing trade finance loans to small and medium-sized businesses. . Hus lies caused millions of dollars of losses. 2008-2023 - Shore News Media & Marketing Ltd. Co. All rights reserved. Securities and Exchange Commission v. Silver. The night sky in May will be filled with exciting sights. 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). 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. 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. a};@_5,}V$dYOKl'[>r. He admitted to operating a Ponzi-like scheme to steal money from IIG investment advisory fund clients and investors for ten years. 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. 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. 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 Click here for information on the investigation into the Mount Vernon Police Department. . Assistant U.S. 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. x|y@W=$ !!_ K %B(.,EPA@Vu T5ZRJiSS7J_}33_8{ Nq-3Vc]y;!T=aQGf/!A'4,\>)Qo%D|~~? dd1z>"IE'*(.y+gcEoqH/,o]_FaMlX;\ In April 2021, Silver also pleaded guilty to investment advisor fraud, securities fraud and wire fraud offenses. HU caused the creation of fake promissory notes and other paperwork to conceal the fraudulent nature of the loans to the Panamanian Shell Entities. Making sure that victims of federal crimes are treated with compassion, fairness and respect. WebView the profiles of people named Martin Silver. 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 addition to the 12 years of prison time, the judge also ordered Hu to serve three years of supervised release. Todays sentence sends the message that brazen fraud does not pay and will be appropriately punished.. Defendant Martin Silver (Defendant) waives service of a summons and the complaint in this WebSilver pled guilty in April 2021. Mismarking multiple loans that were distressed (the Distressed Loans). 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). Your exam is being submitted. 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. There was an error logging in. Date Respondents; Second Quarter: LR-25701: Apr. 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. 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. 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. Trade finance loans are used by small and medium-sized companies, typically exporters and importers, to facilitate international trade. 2 0 obj The SEC previously charged IIG with fraud on November 21, 2019, and revoked IIG's registration as an investment adviser on November26, 2019. On March 30, 2020, the SEC obtained a final judgment on consent enjoining IIG from violating the antifraud provisions of the federal securities laws and requiring IIG to pay more than $35 million in disgorgement and prejudgment interest. 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. As alleged, the overvaluation of these assets resulted in the fund paying inflated fees to IIG, some of which went to Silver. The complaint further alleges that Silver falsely reported to investors that certain fake and overvalued loan assets, which IIG sold between funds it advised, were legitimate assets and fairly valued. A foreign institutional investor provided $70 million as the seed investment for GTFF, and, later, $130 million as the seed investment for STFF. They conspired to defraud IIG investors from approximately 2017 to 2019. CONSENT OF DEFENDANT MARTIN SILVER 1. 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. U.S. Attorney Damian Williams said: David Hu shirked his fiduciary responsibilities and defrauded IIG funds and investors for more than a decade. Sentencing before Judge Hellerstein has been scheduled for November 16, 2021, at 11:00 a.m. 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. Attorneys representing Hu did not immediately respond to a request for comment on Thursday. Assistant U.S. Dont forget you can visit MyAlerts to manage your alerts at any time. . 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. IIG also advised the Venezuela Recovery Fund, a fund that managed the remaining assets of a failed Venezuelan bank. 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. Subscribe to Justia's Free Newsletters featuring summaries of federal and state court opinions. You are now logged in. To view the purposes they believe they have legitimate interest for, or to object to this data processing use the vendor list link below. 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.
