Money manager Alan Bond admits taking kickbacks
NEW YORK, Oct 11 (Reuters) - Alan Bond, the money manager who appeared regularly on the television show "Wall Street Week With Louis Rukeyser," pleaded guilty on Friday to conspiracy and fraud charges for taking more than $6 million in kickbacks from brokerage firms.
Bond, who was president and chief investment officer of Albriond Capital Management, pleaded guilty in Manhattan federal court to one count of conspiracy, four counts of investment advisory fraud and five counts of filing false tax returns. The charges carry a total maximum prison term of 40 years and $10 million in fines.
Bond has been in federal prison since June when a Manhattan federal jury convicted him in a separate case for cheating pension funds out of millions of dollars. At that time, he was convicted of three counts of investment advisory fraud, which carry a possible maximum prison term of 10 years each, and three counts of wire fraud, which carry a possible maximum term of five years each.
He has not yet been sentenced on the June conviction.
Bond, a Dartmouth College and Harvard Business School graduate, was one of a small number of African-Americans to rise to a top position in the lucrative world of money management.
His clients had included such pension and investment funds as the National Basketball Association, City University of New York and the Washington Metropolitan Transit Authority.
He was first arrested in 1999 and accused of defrauding clients by sending unprofitable securities trades to their accounts while directing most of the profitable ones to himself.
Prosecutors said that Bond's "cherry-picking" scheme ran between March 2000 and July 2001, while Bond was out on bail awaiting trial on the kickback charges to which he pleaded guilty on Friday.
They said Bond made $6.3 million from the cherry-picking scheme while his clients lost more than $56 million.
He closed his operations after his second arrest last year on the cherry-picking charges.
10/11/02 18:15 ET |
