Tagliaferri Sentenced To Six Years In Prison For Fraud Related to IEAH

by | 02.13.2015 | 5:47pm

James Tagliaferri was handed a six-year prison sentence on Friday for securities, wire, and investment adviser fraud relating to a scheme authorities said took $120 million of investor capital and provided Tagliaferri $3.35 million in kickbacks.

Tagliaferri funneled the client money into private or troubled companies and ultimately used investor cash to pay some of the clients when they began to look for profits. One of those companies was International Equine Acquisitions Holdings, which campaigned 2008 Triple Crown hopeful Big Brown.

Though he did not admit an intent to deceive investors at the sentencing, Tagliaferri called his own actions through his TAG Virgin Islands money management company “deplorable.”

One investor, software entrepreneur Matthew Szulik, sued Tagliaferri in 2010 after $20 million of funds he wanted invested in low-risk companies was diverted to the high-risk IEAH. The matter was ultimately ordered to mediation.

Read more at Reuters

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