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. Martin Silver (Release No. LR-25673; Mar. 23, 2023) David Hu shirked his fiduciary responsibilities and defrauded IIG funds and investors for more than a decade, Williams said in a news release. This case is being handled by the Offices Securities and Commodities Fraud Task Force. . Stephen Yang. WebMARTIN SILVER, Defendant. 1602-1605, 1749-53, 1783-86. 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 . 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. 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). IIGs principal investment advisory strategy, including with respect to the IIG Funds, was investing in trade finance loans that it also originated. Todays sentence sends the message that brazen fraud does not pay and will be appropriately punished.. Tr. IIG advertised itself as specializing in global trade financing, particularly in providing trade finance loans to small and medium-sized businesses. 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 These Distressed Loans included, for example, loans for which the borrowers had missed multiple scheduled payments. Pursuant to Fed. 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 connection with his plea agreement, SILVER has also agreed to cooperate with the Governments ongoing investigation. 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, These Distressed Loans included, for example, loans for which the borrowers had missed multiple scheduled payments. AI and the Legal Industry: Will AI Lead to Robot Lawyers? 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). 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. 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). CONSENT OF DEFENDANT MARTIN SILVER 1. Dont forget you can visit MyAlerts to manage your alerts at any time. Attorneys Drew Skinner, Negar Tekeei, and Alex Rossmiller are in charge of the prosecution. 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). 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. SILVER pled guilty to investment adviser fraud, securities fraud, and wire fraud offenses in April 2021 and his sentencing is pending. American Airlines ex-pilot convicted in Kentucky 2015 triple murder (AKH). 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). Specifically, in or about December 2012, IIG became an investment adviser to an open-ended mutual fund marketed to retail investors (the Retail Fund). IIG advertised itself as specializing in global trade financing, particularly in providing trade finance loans to small and medium-sized businesses. 2008-2023 - Shore News Media & Marketing Ltd. Co. All rights reserved. In addition, the proceeds from those fraudulent sales were used to generate liquidity required to pay off earlier investors in a Ponzi-like way, the Justice Department charged. % ------------------------------------------, Former Head Of N.Y. 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. Click here to report information on Amazon warehouses. IIG purported to value the trade finance loans in the IIG Funds on a regular basis. His sentence will be formally enforced following the conclusion of the forfeiture and restitution proceeding in the case. Assistant U.S. HU was a managing partner and the chief investment officer of IIG. %PDF-1.6 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. Second Managing Partner Of Investment Advisory Firm Pleads All rights reserved. R Civ. IIG advertised itself as specializing in global trade financing, particularly in providing trade finance loans to small and medium-sized businesses. 2 0 obj Mr. Williams praised the A foreign institutional investor provided $70 million as the seed investment for GTFF, and, later, $130 million as the seed investment for STFF. Hu did that by: overvaluing distressed loans held by the IIG Funds; falsifying paperwork to create a series of fake loans that were fraudulently classified as positively performing loans; and selling overvalued and fake loans to a collateralized loan obligation trust and new private funds established and advised by IIG, according to the Justice Department. 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. 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. Mr. Williams praised the investigative work of the FBI and also thanked the U.S. Securities and Exchange Commission for its assistance. 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. And the 'Rule [], Working for Big Law can be highly remunerative and create some major opportunities in terms of training and remuneration . Co-founder sentenced in evil valuation fraud To view the purposes they believe they have legitimate interest for, or to object to this data processing use the vendor list link below. In March 2018, IIG reported to the SEC that it had about $373 million in assets under management. WebSilver pled guilty in April 2021. The SEC also fileda complaint in the same court against Hu in 2020 over the scheme. 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. 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. Silver personally signed off on rent regulation and 421-a tax abatement legislation. 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 14, 2022 at 04:43 PM My Office remains committed to policing investment advisers who seek to take advantage of their clients for personal and professional gain.. 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). In March 2018, IIG reported to the SEC that it had approximately $373 million in assets under management. Create an alert to follow a developing story, keep current on a competitor, or monitor industry news. Attorneys Drew Skinner, Negar Tekeei, and Alex Rossmiller are in charge of the prosecution. . (212) 637-2600, Human Trafficking & Child Sexual Exploitation, Department of Justice Harassment Prevention Resource, Download Martin Silver superseding information. The consent submitted will only be used for data processing originating from this website. U.S. Attorney Damian Williams said: David Hu shirked his fiduciary responsibilities and defrauded IIG funds and investors for more than a decade. SILVER pled guilty to investment adviser fraud, securities fraud, and wire fraud offenses in April 2021 and his sentencing is pending. 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. Sentencing to the Starting Point: The Alberta Debate VIII. SILVER pled guilty to investment adviser fraud, securities fraud, and wire fraud offenses in April 2021 and his sentencing is pending. 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. The military court eventually convicted Martin on one count of mishandling classified information and one count of assault on a child. . Todays sentence sends the message that brazen fraud does not pay and will be appropriately punished.. Mr. Williams praised the investigative work of the FBI and also thanked the U.S. Securities and Exchange Commission for its assistance. These filings and docket sheets should not be considered findings of fact or liability, nor do they necessarily reflect the view of Justia. 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. Manage Settings Write CSS OR LESS and hit save. NY Fund Manager Gets 13 Months for $100 Million Ponzi Fraud (1) 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). WebView the profiles of people named Martin Silver. 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. P 54(b), there is no just reason for delay in the entry of Judgment. 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. Both Hu and Silver have also reached settlements with the U.S. Securities and Exchange Commission in parallel 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. 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. 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. The firm also advised the Venezuela Recovery Fund, a fund that managed the remaining assets of a failed Venezuelan bank. Sacramento mass shooting suspect released from prison early Former Head Of N.Y. Advisor Sentenced To 12 Years In Attorneys representing Hu did not immediately respond to a request for comment on Thursday. 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. David Hu, the former managing partner of International Investment Group (IIG) was sentenced to 12 years in prison for his role in defrauding investors of more than $120 million in a Ponzi-like scheme. Share & Print. IIG also advised the Venezuela Recovery Fund, a fund that managed the remaining assets of a failed Venezuelan bank. Trade finance loans are used by small and medium-sized companies, typically exporters and importers, to facilitate international trade. One St. Andrews Plaza - New York, NY 10007, Securities, Commodities, & Investment Fraud, James Margolin, Nicholas Biase Todays sentence sends the message that brazen fraud does not pay and will be appropriately punished.. State of the US legal market . SILVER was a managing partner and the chief operating officer of IIG. The Feb. 1 judgment resolved all the issues in this action, except the Commissions claims for monetary relief against Hu, the documents said. Assistant U.S. Get alerted any time new stories match your search criteria. Hus lies caused millions of dollars of losses, he added. 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. 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. The court also plans to impose restitution to victims and forfeiture of the proceeds. 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). Continue with Recommended Cookies. We also report on politics on the State and National levels. The court also announced it planned to impose restitution to victims and forfeiture of the proceeds of the offenses involved in the case, with the amounts to be determined at a later date. 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 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. Click here for information on the investigation into the Mount Vernon Police Department. 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). His sentencing is pending, Williams said. His accomplice, Malvo, was sentenced to life imprisonment without the possibility of parole.