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Grimy Times Exclusive: Martin Silver, Managing Partner, Pleads Guilty to $100M Ponzi-Like Scheme
By: [Journalist’s Name]
Grimy Times Investigation
Audrey Strauss, United States Attorney for the Southern District of New York, announced today that Martin Silver, a managing partner and the chief operating officer of International Investment Group (IIG), a New York-based investment advisory firm, plead guilty to investment adviser fraud, securities fraud, and wire fraud offenses in connection with an over $100 million scheme to defraud IIG’s investment advisory fund clients and investors.
According to court documents, Silver perpetrated the scheme by creating fictitious investments and overvaluing investments used to generate funds to pay off earlier investors in a Ponzi-like manner. In connection with his plea agreement, Silver has also agreed to cooperate with the Government’s ongoing investigation.
Silver, 67, of New York, New York, was arrested in 2023 and charged with investment adviser fraud, securities fraud, and wire fraud offenses. He will be sentenced on [Date] before U.S. District Judge Alvin K. Hellerstein.
The scheme, which ran from approximately 2007 to 2019, involved Silver and his co-conspirator creating fictitious investments and overvaluing investments in IIG-managed funds. The investments were marketed to institutional investors, such as pension funds, hedge funds, and insurers. IIG purported to value the trade finance loans in the IIG Funds on a regular basis, and Silver received a performance fee with respect to the IIG Funds, as well as a management fee, which was calculated as a percentage of the assets under management held in the Funds.
As a result of the scheme, IIG reported to the SEC that it had approximately $373 million in assets under management in March 2018. The total amount of losses suffered by investors is estimated to be over $100 million.
Silver’s plea deal marks a significant victory for the Manhattan U.S. Attorney’s Office in its ongoing efforts to police investment advisers who seek to take advantage of their clients for personal and professional gain.
Silver faces up to 20 years in prison and a fine of up to $5 million.
In a statement, Manhattan U.S. Attorney Audrey Strauss said: “Today, Martin Silver admitted to participating in a sophisticated, decade-long scheme to defraud IIG funds and investors, abandoning his fiduciary responsibilities to IIG’s clients, and causing millions of dollars of losses. My Office remains committed to policing investment advisers who seek to take advantage of their clients for personal and professional gain.”
Key Facts
- State: New York
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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