Hedge Fund Manager Accused Of Spending Investor Cash On Cars, His Son’s Mortgage Rededicates Himself To Serving Clients

All it took was a little chat between Raymond Montoya and the U.S. Attorney’s Office.
By 根川孝太郎 (Kotaro Negawa) (Own work) [CC BY-SA 4.0], via Wikimedia Commons

By 根川孝太郎 (Kotaro Negawa) (Own work) [CC BY-SA 4.0], via Wikimedia Commons

During his eight years as a hedge fund manager, Raymond Montoya raised a good $100 million. He even invested some it. The rest went to the usual: Ponzi scheme payments, lavish vacations, Ferraris, Porsches, college tuition and his son’s mortgage. This “egregious fraud” eventually came to the attention of Massachusetts Secretary of the Commonwealth William Galvin, who brought it to the attention of the federal authorities, who sat down with Montoya and explained that what he had done was wrong. They (and their handcuffs) must have been pretty persuasive, because the 69-year-old Bostonian has completely turned his life around, according to his lawyer.

"His efforts are focused on preserving assets for ultimate return to investors," Bruno said in a statement.

During a court hearing, Assistant U.S. Attorney Neil Gallagher said Montoya had already agreed to freeze accounts he controlled holding $6 million to $8 million in assets and forfeit 10 vehicles including three Ferraris and two Porsches.

How responsible of him.

Prosecutors say Boston hedge fund’s manager defrauded investors [Reuters]