Conn. Fraud Lawsuit Details Bribery In Venezuela


Salon Staff
February 10, 2012 1:36AM (UTC)

HARTFORD, Conn. (AP) — A lawsuit alleges that a Connecticut hedge fund adviser who carried out a $500 million fraud scheme had help from people in Venezuela, including a manager at the state-owned oil company.

The receiver investigating the dealings of Venezuelan-American financier Francisco Illarramendi (EE'-yah-rah-mehn-dee) has filed multiple lawsuits seeking the return of tens of millions of dollars in what it calls bribes and kickbacks.

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Illarramendi ran unregistered hedge funds out of offices in Stamford, Conn. before pleading guilty last March to several counts of fraud and conspiracy to obstruct justice in a scheme to conceal huge losses. His biggest investor was a pension fund for Venezuelan state oil workers.

Those accused of taking payoffs to help Illarramendi include a former pension fund manager at the oil company and a well-connected businessman.


Salon Staff

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