Former Bayou CEO sentenced to jail

James Marquez, the co-founder of defunct hedge fund company Bayou Group LLC, was ordered to serve 51 months in jail for conspiring to defraud investors, according to Reuters. Mr. Marquez is the first defendant to be sentenced in the case, which has led to calls for increased regulation of those investments. The Stamford, Conn.-based company, which once managed more than $400 million in assets, fell apart in 2005 following the discovery of multiple frauds by its managers. Co-founder Samuel Israel and executive Daniel Marino will also be held accountable for their role in the "unthinkable, astronomical losses" at Bayou, said U.S. District Judge Colleen McMahon. Judge McMahon also sentenced Mr. Marquez to two years' supervised release and ordered him to pay $6.25 million in restitution. Mr. Marquez had admitted that the fund sustained consistent losses from 1996 to 2001 that were concealed from investors. He is due to report to jail on April 21. Mr. Marino is scheduled to be sentenced on Jan. 29, while a date for Mr. Israel's sentencing has not been set, according to the report.