Former MIT Professor, Son Plead Guilty In Hedge Fund Fraud
Gabriel Bitran, a former professor at the Massachusetts Institute of Technology and associate dean at its business school, and his son Marco Bitran, pleaded guilty to criminal charges that they lied about their investment record.
The Bitrans founded hedge fund GMB Capital Management in 2005 and raised more than $500 million from wealthy investors who wanted a piece of the MIT’s professor’s exclusive computer models, which the pair falsely said never had suffered a down year and delivered double-digit returns ranging between 16 percent and 23 percent. But, instead of investing the money themselves, the Bitrans invested it with others, including the now notorious Tom Petters and Bernie Madoff.
At the height of the financial crisis, when several of the Bitran’s funds plunged in value, the Bitrans pulled roughly $12 million of their own money out but left their investors stuck in tumbling investments, leading investors to lose more than $140 million.
The attorneys of Eccleston Law Offices represent investors and advisers nationwide in securities and employment matters. Our attorneys draw on a combined experience of nearly 50 years in delivering the highest quality legal services.
Related Attorneys: James J. Eccleston