Bayou Hedge Fund Fiasco Continues

WHITE PLAINS, N.Y. (CN) - The brother of the Bayou hedge fund's CFO pleaded guilty Wednesday to helping his brother conceal the $450 million fraud on investors. Matthew Marino, brother of Bayou CFO Daniel Marino, pleaded guilty to a one-count information in Federal Court.

The most notorious figure in Bayou hedge fund scam was CEO Samuel Israel III, who disappeared briefly this year after faking his own suicide, rather than report to prison to serve his 20-year sentence.

Matthew Marino pleaded guilty to knowing, but failing to divulge, that his brother Daniel, a CPA, formed a public accounting firm called Richmond-Fairfield Associates, to juggle the books and conceal the Bayou hedge fund frauds.

Matthew Marino admitted in his allocution that he failed to report mail, wire and investment adviser fraud.

He faces up to 3 years in prison at his Dec. 4 sentencing, a fine of up to $250,000 and an order of restitution "in an amount no greater than $300 million," according to the U.S. Attorney's Office.

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