Home New York Press Releases 2009 Twenty-One Month Sentence Imposed for Concealing Bayou Fraud
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Twenty-One Month Sentence Imposed for Concealing Bayou Fraud

U.S. Attorney’s Office April 22, 2009
  • Southern District of New York (212) 637-2600

LEV L. DASSIN, the Acting United States Attorney for the Southern District of New York, announced that MATTHEW MARINO was sentenced late yesterday by United States District Judge STEPHEN C. ROBINSON to serve a term of 21 months in prison for knowing about the fraud on the investors in the now-collapsed Bayou Hedge Funds and taking steps to conceal it. MARINO was also ordered to pay $60 million in restitution.

MARINO admitted during his guilty plea on September 3, 2008, that, between January 2005 and August 2005, he knew that a fraud was being perpetrated on Bayou investors and he helped conceal the fraud by, among other things, preventing lawyers involved in divorce proceedings against Samuel Israel, one of the principals of the Bayou funds, from obtaining Bayou documents that might have revealed the fraud. He further admitted that he assisted in the creation of a fraudulent document that was intended to be provided to an investor who was questioning the independence of Richmond Fairfield Associates, a sham firm.

MARINO was ordered to surrender on June 29, 2009, to a federal prison to begin serving his sentence. Judge ROBINSON also sentenced MARINO to one year of supervised release to follow his incarceration. The Court also ordered that MARINO pay $60 million in restitution to his victims.

Mr. DASSIN praised the efforts of the Federal Bureau of Investigation.

Assistant United States Attorney MARGERY B. FEINZIG is in charge of the criminal prosecution.

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