SEC Blasts Hedge Fund Adviser Over $53M Self-Dealing

Law360, New York (January 14, 2011, 4:09 PM EST) -- The U.S. Securities and Exchange Commission has accused a hedge fund adviser of siphoning $53 million of investors' money and sinking it into clean energy startups and other private equity ventures.

The agency filed suit against Francisco Illarramendi on Friday in the U.S. District Court for the District of Connecticut, alleging that the unregistered Stamford, Conn.-based adviser looted two funds under his watch in order to make surreptitious private equity investments.

Illarramendi advises hedge funds through MK Capital Management, one of the companies he owns that...
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