The U.S. Appeals Court this morning upheld US Federal District Judge Richard Sullivan’s order to revoke bail for Alberto Vilar, sending the former philanthropist back to prison to complete his nine-year sentence (we are informed by a friend of the defendant). He had been out on bail since October 2012.
The order means that Vilar, 73, and his former partner Gary Tanaka, 70, must surrender to Pre-Trial Services in downtown Manhatttan by 2 pm local time where two Federal Marshals are expected to pick them up.
The three-member appeals panel also denied the defendants’ request for a stay of Sullivan’s order to remand the two to prison by today, pending re-sentencing which isn’t expected until early next year. In September the panel upheld the convictions, but ordered the district court to recalculate fraud-related losses which could reduce Vilar’s nine-year sentence. He has served four years already.
No all is lost, said Vilar’s lawyer Vivian Shevitz. Vilar and Tanaka could be freed within a week if agreement is reach on new bail packages, she said. In Vilar’s case, three of his friends had signed a personal recognizance bond for a total of ten million dollars.
Vilar was convicted by a jury in 2008 on all 12 counts, including investors fraud and conspiracy charges. Sullivan sentenced him to nine years under federal guidelines. Tanaka was found guilty on three counts and received a five-year sentence.
The government charged that the two former principals of Amerindo Investment Advisers Inc with have stolen $22 million dollars from a handful of offshore clients. Shevitz argued unsuccessfully that there were no losses, and accused the government of hiding material exculpatory facts from the jury.
The jury never learned that more than $40 million were left in frozen accounts at JPMorgan Chase, more than enough to make all “victims’ whole. This fact come out at Vilar’s sentencing hearing long after the jury had been dismissed.
The money was never managed and JPMorgan to this day has not paid any interest on these funds.