Harvard-Trained Mutual Fund Manager Charged With Securities Fraud
BOSTON – A Boston-area mutual fund manager was arrested last night on securities fraud charges in connection with an alleged scheme to use the fund’s money to issue fictitious loans.
Daniel Thibeault, 40, of Framingham, was charged in a criminal complaint with a single count of securities fraud. Thibeault was held overnight and had an initial appearance today before U.S. Magistrate Judge M. Page Kelley.
As set forth in the complaint, Thibeault is the founder and principal owner of Graduate Leverage, LLC, an asset management and financial advisory firm he founded while a student at Harvard Business School, from which he graduated in 2004. Thibeault is also the co-portfolio manager of the GL Beyond Income Fund, a mutual fund launched in March 2012 that purports to invest in consumer loans to individuals “it believes are less susceptible to economic downturns, such as medical doctors, dentists, veterinarians, attorneys and business owners.” As of Jan.31, 2014, the Fund reported net assets of approximately $31 million – a number that the complaint alleges has increased since that time.
The complaint alleges that, although the Fund is marketed as consisting of a diversified pool of hundreds of consumer loans to young professionals, Thibeault caused the Fund to issue, or acquire, a number of fictitious loans to individuals who never requested and did not, in fact, receive such loans. Thibeault allegedly falsified or caused to be falsified the documentation related to those loans.
The charging statute provides for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $5 million. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The United States Attorney’s Office received valuable assistance from the Securities & Exchange Commission in the course of investigating this case. The case is being prosecuted by Stephen E. Frank, Deputy Chief of Ortiz’s Economic Crimes Unit.
The details contained in the complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.