Hedge Funds

Bitran’s Law: Self-Aggrandizing Lies + Bernie Madoff = Jail

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.

Ex-MIT Professor, Son to Plead Guilty in Hedge Fund Scam [Bloomberg]

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3 Responses to “Bitran’s Law: Self-Aggrandizing Lies + Bernie Madoff = Jail”

  1. Danker_Banker says:

    One metric where HBS (where the son went) and Wharton definitely crush Stanford is number of white collar criminals. Granted, they're bigger and produce a lot more finance grads, but still it seems like an out-sized proportion…

  2. St. Copious says:

    And to think, they'd still be in business if they hadn't had the spectacular bad luck of parking money with Madoff (out of the zillion managers out there). And would still be collecting millions in fees for doing basically nothing.