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. Man found guilty of manslaughter, attempted first-degree murder Todays sentence sends the message that brazen fraud does not pay and will be appropriately punished.. In that proceeding, Silver pleaded guilty and has been sentenced and ordered to pay restitution and forfeit assets. Hu co-founded the Manhattan-based International Investment Group (IIG) in 1994. Attorneys Drew Skinner, Negar Tekeei, and Alex Rossmiller are in charge of the prosecution. In April 2021, Silver also pleaded guilty to investment advisor fraud, securities fraud and wire fraud offenses. Sheldon Silver arrives at Manhattan federal court on Tuesday. 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. AI and the Legal Industry: Will AI Lead to Robot Lawyers? 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. So Ordered (Signed by Judge Denise L. Cote on 4/16/2021) (js). The consent submitted will only be used for data processing originating from this website. IIG advertised itself as specializing in global trade financing, particularly in providing trade finance loans to small and medium-sized businesses. 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. Sentencing before Judge Hellerstein has been scheduled for November 16, 2021, at 11:00 a.m. Listen to free podcasts to get the info you need to solve business challenges! 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. 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. WebRelease No. 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. IIG purported to value the trade finance loans in the IIG Funds on a regular basis. Legal marketing tips for 2023 . Trade finance loans are used by small and medium-sized companies, typically exporters and importers, to facilitate international trade.
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