Hedge Fund Manager Arrested
Defendant allegedly ran multi-million dollar Ponzi scheme
BOSTON – A Boston-area hedge fund manager was arrested and charged today in federal court in Boston with running a multi-million dollar Ponzi scheme.
Raymond K. Montoya, 69, of Allston, was charged with mail fraud and wire fraud. Montoya was released on conditions following an initial appearance in federal court this afternoon.
Between 2009 and June 2017, Montoya ran a pooled investment hedge fund in Boston called RMA Strategic Opportunity Fund, LLC. It is alleged that Montoya falsely told his investors—including his family, friends, and acquaintances who resided in Massachusetts, Ohio, and California—that the fund was earning substantial returns, when in fact, by 2014, the RMA Fund was sustaining substantial losses. According to court documents, the victims transferred millions of dollars of their personal savings and 401(k) retirement plans to Montoya and the RMA Fund. Montoya told his investors that he would invest their money in stocks and bonds, but he actually invested only a portion of their money, while diverting the rest—totaling millions of dollars—to business and personal bank accounts. Montoya allegedly used the diverted money for personal expenses such as luxury vehicles and the mortgage on his son’s residence.
Montoya was previously charged with securities fraud in a civil complaint by the Massachusetts Securities Division.
The charging statutes provide for a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $250,000 or twice the gross gain or gross loss from the offense, restitution and forfeiture. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The Massachusetts Securities Division provided valuable assistance. The case is being prosecuted by Assistant U.S. Attorney Neil J. Gallagher Jr. of Weinreb’s Economic Crimes Unit.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.