Former MIT professor and associate business school dean Gabriel Bitran spent the second half of the past decade touting the trading model he’d built with his own investment research. Unfortunately for investors, this model was actually to invest with hedge-fund managers who had actually built investment models, including one Bernard L. Madoff. This is what federal prosecutors call “fraud.”
Gabriel Bitran, who was a professor and associate dean at MIT’s Sloan School of Management, and his son, Marco, wooed investors to GMB Capital Management LLC with fake claims of success in managing family and friends’ accounts using a trading model based on the father’s research….
Each will plead guilty to one count of conspiracy to commit securities fraud, wire fraud and falsify documents and face a maximum sentence of five years in prison, according to agreements with prosecutors.