MANHATTAN (CN) - The brother of a former Bayou hedge fund executive was sentenced to 21 months in prison after pleading guilty to helping conceal a fraud to bilk Bayou clients of more than $400 million. Prosecutors said Matthew Marino knew of the fraud run by top executives, including his brother, Daniel.
Marino helped conceal the fraud by, among other things, preventing lawyers involved in divorce proceeding against Samuel Israel III, the company's former chief executive, from obtaining Bayou documents that would have revealed the fraud.
Marino also created phony documents to provide to an investor who was questioning the legitimacy of Richmond-Fairfield Associates, a sham accounting firm created to conceal the shady dealings.
Daniel Marino and Israel pleaded guilty to criminal charges and were each sentenced to 20 years in prison last year.
Matthew Marino was ordered to surrender to federal prison on June 29 to begin serving his sentence. He was also ordered to pay $60 million in restitution.
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