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Wednesday, January 30, 2008

Former Westport Man Gets 20 Years in Hedge Fund Fraud

A former Westport resident who was the chief financial officer of the Bayou Group, the Stamford-based hedge fund involved in what federal prosecutors have described as a $350 million fraud, has been sentenced to 20 years in prison.WestportNow.com Image
261 Bayberry Lane: house sold at auction for $2 million as part of restitution. (CLICK TO ENLARGE) Dave Matlow/WestportNow file photo

Daniel E. Marino, 48, apologized in Manhattan federal court Tuesday before the sentencing, telling U. S. District Judge Colleen McMahon that he was “truly sorry.”

Marino, whose home on Bayberry Lane was sold at auction last year, pleaded guilty to mail fraud, wire fraud, investment adviser fraud and a conspiracy to commit those crimes in Federal District Court in White Plains, N.Y in September 2005. (See WestportNow Sept. 29, 2005)

In announcing the sentence, the judge cited the size of the fraud and Marino’s role as the “linchpin” in the scheme. Marino, who had sought leniency due to his cooperation with prosecutors, was ordered imprisoned immediately. He was handcuffed by U.S. marshals and led away.

“You are as much a career criminal as any mobster or any drug kingpin,” the judge told Marino. “There is simply no alternative but to punish you for your life of crime.”

Marino began helping prosecutors after an investor discovered his confession and suicide note at Bayou’s Stamford office in 2005. (See WestportNow Aug. 29, 2005)

Prosecutors have said Marino helped make it appear that Bayou was earning profits on trading when it was not, and created ‘’fictitious’’ quarterly and annual reports. Prosecutors say the fraud occurred from 1996 to 2005.

“I deeply regret my action,’’ Marino said when he pleaded guilty. “I am very sorry in more ways than I can say. I one hundred percent accept responsibility.’’

McMahon said she will order Marino to pay restitution in the “nine figures” and would set the amount within 90 days. Marino’s lawyer, Westport attorney Andrew Bowman, said he will appeal the sentence.

Bowman had asked the judge for leniency, describing Marino as a man with a long history of health and self-esteem issues who had great loyalty to the fund’s founders that was not reciprocated.

Marino was a socially isolated man who had little in his life outside of his job at the fund, his lawyer said, adding that Marino never himself engaged in any trading activities there.

Marino had pledged to give up his Westport home as part of his restitution. The 7,300-square foot house on two acres at 261 Bayberry Lane was foreclosed on by the note holder and sold at auction in March 2007 for $2,045,000.

Marino’s sentence was more than four times longer than the prison term handed down last week to one of the firm’s founders, James Marquez, who was ordered to serve four years and three months in prison. Another founder of the firm, Samuel Israel III, awaits sentencing.

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Posted 01/30/08 at 12:45 PM  Permalink



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Self esteem issues?  Duping countless people out of their life savings is a sure way to help build self esteem. Living the lap of luxury while all the others suffered at your hands, doesn’t make me feel to sorry for him.  I seem to be having flashbacks of the movie “Boiler Room”.  The A***ole should have gotten 100 years instead of 20.

Posted by Stanley Millazzo on January 30, 2008 at 08:06 PM | #
 

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Manipulators saturate the media with carefully worded information, even though they know it is either fully or partially false, because they know that what they put out there will create a false or misleading impression about the real state of the market.  This false reality is intended to send other traders and investors into a panic to sell or buy a stock.

Enter BasherBusters.com. We’re here to give individual traders a free, accurate, instantaneous forum that can make a big impact on putting an end to market greed and on leveling the playing field for investors of all sizes. But we can’t do it alone. Voice your opinions, report the disparities you find, and use us to check up on what you’ve heard elsewhere.  Help us keep “them” honest.

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Posted by Grant Pascau on February 01, 2008 at 04:03 PM | #
 

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