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Through this illegal scheme, which went on from September of 2001 to January 2005, Gilabert and the firm raised $14.1 million through selling limited partnership interests in a hedge fund called the GLT Venture Fund. CMG was the investment advisor of the fund and told investors that the fund had made 19% returns and therefore charged fees based on that performance figure.
In reality, the fund lost $7.8 million, as the SEC complaint alleges.
Gilabert has agreed to plead guilty to charges of conspiracy to commit mail, wire and securities fraud.
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