Court Sentences 2 for Barring SEC Probe into Connecticut Fund Manager

Jack Humphrey, Regulatory journalist
February 02, 2012 /

Florida resident Juan Carlos Horna Napolitano was sentenced by United States District Judge Stefan R. Underhill in Bridgeport, Connecticut to 14 months imprisonment, followed by two years supervised release, for his role in conspiring to obstruct a Commission investigation relating to Francisco Illarramendi, a Connecticut hedge fund advisor. Horna Napolitano was also ordered to forfeit $935,000.

Judge Underhill had previously sentenced a Venezuelan accountant, Juan Carlos Guillen Zerpa, for his role in the conspiracy to obstruct the SEC’s investigation. On December 14, 2011, Guillen Zerpa was sentenced to 14 months imprisonment, followed by two years supervised release and ordered to pay a $10,000 fine and to forfeit $315,000.

Separately, on December 15, 2011, the Commission issued an Order suspending Guillen Zerpa forthwith from appearing or practicing before the SEC. Guillen Zerpa has been licensed as a certified public accountant in the Bolivarian Republic of Venezuela since 1989.

In January 2011, the SEC charged Illarramendi with engaging in a multi-year Ponzi scheme involving hundreds of millions of dollars. On March 7, 2011, Illarramendi pleaded guilty to two counts of wire fraud, one count of securities fraud, one count of investment advisor fraud, and one count of conspiracy to obstruct justice, to obstruct an official proceeding and to defraud the SEC.

He is awaiting sentencing. On August 3, 2011, the Commission issued an Order by consent barring Illarramendi from association with any broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or nationally recognized statistical rating organization.

The SEC’s investigation is continuing. The U.S. Attorney’s Office for the District of Connecticut and the Federal Bureau of Investigation assisted in the queries.

 

Share your opinion