Federal prosecutors had asked for Hu, who’s in his 60s, to receive 15 years in prison, saying the “impact of harm caused by the defendant, the lies he peddled to investor victims and the damage he caused to funds he advised” shows the need for a substantial sentence.
“Day in and day out, throughout the course of more than a decade, the defendant abandoned his fiduciary responsibilities as an investment adviser and defrauded IIG funds and investors, causing more than a hundred million dollars in losses to those funds and investors,” prosecutors said in a memo ahead of sentencing.
While the victims of the alleged fraud weren’t identified in the case, prosecutors said the firm’s investments were marketed to hedge funds, insurers and pension funds.
According to prosecutors, Hu and Silver cheated investors by overvaluing defaulted or distressed loans held by IIG funds and falsifying documents to create fake ones that were purportedly performing well. The loans were sold to a collateralized loan obligation trust, with the proceeds…
