NEW YORK Dec 18 A U.S. jury has found former
London-based portfolio manager Michael Balboa guilty of fraud
and conspiracy in a scheme to inflate his hedge fund's assets by
manipulating the value of Nigerian debt, a court officer said on
Jurors issued their verdict on the former Millennium Global
Investments Ltd manager after a two-week trial before U.S.
District Judge Paul Crotty in Manhattan. A mistrial had been
declared in July in an earlier trial.
Balboa was charged with securities fraud, wire fraud,
investment adviser fraud and two counts of conspiracy.
His lawyer, Joseph Tacopina, did not immediately respond to
requests for comment.
The case centered on the Millennium Global Emerging Credit
Fund, which invested in emerging markets corporate and sovereign
debt. According to investigators, it once reported $844 million
The U.S. Department of Justice alleged Balboa inflated the
value of warrants tied to Nigerian debt in which payments were
based on the price of oil.
The government said this made the fund appear healthier than
it was, and inflated the fees that Balboa could collect.
Balboa had worked at Millennium from December 2006 until
October 2008, when his fund shut down.
The U.S. Securities and Exchange Commission filed a related
The case is U.S. v. Balboa, U.S. District Court, Southern
District of New York, No. 12-cr-00196.