Wednesday, November 19, 2008

Vilar Convicted

So far, there's an AP report at the LA Times. The NY Times will undoubtedly have something up today.

Update: And here it is. Of course, Vilar will appeal and his attorney says they expect to be vindicated. Right, well, you have to say that.

Dan Wakin's story includes these gems:

“Beginning in the fall of 2002 they lulled Ms. Cates with lie after lie,” an assistant United States attorney, Marc Litt, said in closing arguments last week. He said Mr. Vilar was so pressed for funds that he had Ms. Cates call her broker from his kitchen after a meeting at his home to send the money.

When she pressed them for the money back, Mr. Litt said, they put her off and then lied to the Securities and Exchange Commission when she complained.

Instead, within weeks of his receiving the money, $1 million went to Mr. Vilar’s personal account; $650,000 went to an Amerindo corporate checking account; and $3.1 million went toward a settlement with other clients who were seeking their money back, Mr. Litt said, citing internal Amerindo documents.

Mr. Vilar used most of the $1 million to fulfill pledges to Washington & Jefferson and the American Academy in Berlin.

In another transaction involving Ms. Cates, an Amerindo employee said that she had cut and pasted Ms. Cates signature on a letter of authorization for a $250,000 transfer from one of her outside accounts, on Mr. Tanaka’s orders. The money was immediately used to make two $53,000 mortgage payments on Mr. Vilar’s apartment, which was facing foreclosures, [assistant U.S. attorney] Mr. Litt said.

“That’s about as fraudulent as it gets,” he added.
Damn right. Vilar's business turned into a Ponzi scheme, in effect.


Daniel Wolf said...

There's definitely a libretto there.

Lisa Hirsch said...

Oh, yeah. And I think you just missed my update.

Henry Holland said...

What a stupid, stupid man you are, Alberto Vilar. If you're going to defraud people, paying large sums of money to get your name attached to buildings and other attention whore shennanigans is surely a bad strategy.

His mendacity had two ramifications for Los Angeles Opera: the Industrial Light & Magic Ring went away and it caused the Kirov War & Peace that he was bankrolling to be canceled. Damn.