James G. Marquez, the founder of several Bayou Management hedge funds, was sentenced yesterday by a federal district judge to 51 months in prison, followed by two years of supervised release. He must also pay close to $6.26 million in restitution.
In December 2006, Marquez pleaded guilty to conspiring with Bayou’s CEO (Samuel Israel III) and CFO (Daniel Marino) to misrepresent the profitability and overstate the value of the Bayou funds. Investors relying on those representations lost mountains of money when Bayou collapsed in July 2005. Read the nytimes.com article here. Israel and Marino still await sentencing.