Stamford Hedge Fund Manager Arrested

Nora R. Dannehy, Acting United States Attorney for the District of Connecticut, today announced that FRANCESCO RUSCIANO, 27, of Strawberry Hill Avenue, Stamford, has been arrested on a federal Criminal Complaint charging him with mail fraud.  Federal Bureau of Investigation agents arrested RUSCIANO today at his residence.

According to documents filed with the Court and statements made in court, RUSCIANO is alleged to have raised money for two hedge funds, the Ponta Negra Fund I, LLC and the Ponta Negra Offshore Fund I, Ltd., and defrauded victims by materially overstating and misrepresenting his background and experience, and overstating his success and historic performance.

Following his arrest, RUSCIANO appeared before United States Magistrate Judge Holly B. Fitzsimmons in Bridgeport.  RUSCIANO is detained pending a hearing that is scheduled for Monday, May 4, at 12:00 p.m.

Acting U.S. Attorney Dannehy stressed that a Complaint is only a charge and is not evidence of guilt.  The defendant is entitled to have this matter presented to a grand jury and, in the event an indictment is returned, he is entitled to a trial at which it will be the Government’s burden to prove guilt beyond a reasonable doubt.

This case is being investigated by the Federal Bureau of Investigation with the assistance of the Securities and Exchange Commission and U.S. Immigration and Customs Enforcement.  The case is being prosecuted by Assistant United States Attorney Michael S. McGarry and Senior Litigation Counsel Christopher W. Schmeisser.