On November 7, 2017, Nicholas Mitsakos was sentenced by Judge Denny Chin to 30 months in prison and two years of supervised release for conspiracy to commit securities fraud and wire fraud.  Mitsakos, who had pled guilty on May 25, 2017, was also required to forfeit over $860,000 and to pay restitution to victims.  In order to attract investors to “Matrix Capital,” a hedge fund he created in October 2013, Mitsakos sent marketing materials claiming that Matrix had millions in assets under management and had achieved outsized returns in the recent past (including a claimed 66% return in 2013).  In fact, Matrix had never bought or sold securities before and had no funds under management until September 2015, when a victim provided funds. The returns discussed in marketing materials were actually hypothetical descriptions of how Matrix would have performed if it had purchased certain securities, which it had not.  Once Matrix obtained funds from investors (about $2 million), it used only some of the money (about $1.2 million) to make investments, and spent the rest on business and personal expenses.  U.S. v. Mitsakos, 1:16-CR-00631 (S.D.N.Y.)

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