A former associate dean from the Massachusetts Institute of Technology school and his son, a Harvard Business School graduate have been caught running a hedge fund scam, say authorities looking at Bernie Madoff’s Ponzi scheme.
Market Watch reports that Gabriel Bitran, a professor and associate dean at MIT’s Sloan School of Management, and his son, Marco, a money manager, have pleaded guilty to charges of conspiracy to commit securities fraud, wire fraud and obstruction of justice in connection with their hedge fund businesses, by Boston prosecutors.
The father and son are facing up to five years in prison.
The Bitrans raised $500 million between 2005 to 2011 from investors after claiming the fund had returns of between 16% and 23% over eight or more years of managing money from family and friends — and no down years.
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