Alberto Vilar, founder and president of Amerindo Investment Advisors, was arrested and charged with defrauding a client of $5 million, said Allan Weissmann, inspector and public information officer with the Postal Inspection Service in New York. The fraud complaint was filed May 25 by U.S. Postal Inspector Cynthia Fraterrigo in the Southern District of New York, where the infractions, which involved wire transfers, took place. Gary Tanaka, co-founder of Amerindo, also was arrested and charged with fraudulently using investor funds.
According to the complaint against Mr. Vilar, in 2002, the individual he is accused of defrauding agreed to invest $5 million with Amerindo in a Participating Securities Small Business Investment Company program.
The investment was deposited in a brokerage account by Mr. Vilar "as a personal piggy bank" to pay personal expenses and make charitable donations, Ms. Fraterrigo said in the complaint.