NEW YORK - More than $12.4 million has been awarded to pension funds by a federal court judge as restitution for losses caused by former money manager Alan Bond, convicted of investment advisory and wire fraud.
Mr. Bond, former president and chief investment officer of Albriond Capital Management, New York, was found guilty by a jury in June 2002 of a cherry-picking scheme in which he placed securities trades and put the winners in his personal account and the losers in his clients' accounts. In a separate case, he pleaded guilty in September 2002 to engaging in a multimillion-dollar kickback scheme with his clients' brokers.
In February 2003, Judge Leonard Sand of the U.S. District Court for the Southern District of New York sentenced Mr. Bond to 12 years and seven months in prison for three counts of investment advisory fraud and three counts of wire fraud, covering both cases. At that time, Judge Sand also ordered Mr. Bond to pay $6.6 million in restitution to the three pension funds defrauded by the cherry-picking scheme, based on recommendations from prosecuting attorneys. Mr. Bond is serving his sentence at Fort Dix prison in New York.
In May, Judge Sand ordered Mr. Bond to pay a total of $5.8 million in restitution to the victims of the kickback scheme. He ordered that specific amounts be paid to each former client, based on recommendations from prosecuting attorneys.