BOSTON (AP) — A Boston hedge fund manager who scammed millions of dollars from friends, family and other investors in what authorities say was a Ponzi scheme has been sent to prison for more than 14 years.
Federal prosecutors say 70-year-old Raymond Montoya used the money for personal purchases, including luxury cars and his son's mortgage.
Montoya from 2009 until 2017 ran a pooled investment hedge fund called RMA Strategic Opportunity Fund, LLC. Prosecutors say he told investors the fund was earning substantial returns, when by 2014 it was sustaining losses.
Montoya, from the city's Allston neighborhood, pleaded guilty in October to wire fraud, mail fraud and unlawful monetary transaction charges.
He was also sentenced Thursday to three years of probation and ordered to pay restitution in an amount yet to be determined.