Reuters reported yesterday that the former chief financial officer of defunct hedge fund Bayou Group was sentenced to 20 years in prison for his role in a scheme that defrauded investors of USD450 million and led to the fund’s collapse. The executive, Daniel Marino, pleaded guilty in September 2005 to conspiracy and three counts of fraud. At a hearing in US District Court in Manhattan, Judge Colleen McMahon ordered him to begin serving the prison sentence immediately. The fund’s two founders — Samuel Israel III and James Marquez — have also pleaded guilty. Marquez was sentenced last week to four years and three months in prison and ordered to pay USD6.25 million in restitution. Israel awaits sentencing.
What a contrast – the founder got four years versus twenty for the CFO.