Hedge Fund Manager Arrested

[nitpicker]

https://www.justice.gov/usao-ma/pr/hedge-fund-manager-arrested

Department of Justice
U.S. Attorney’s Office
District of Massachusetts

FOR IMMEDIATE RELEASE
Wednesday, August 2, 2017

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.
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