A manager at a one-time $8 billion hedge fund has been reportedly found guilty of securities fraud

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January 19, 2017 10:14 PM

A lawyer for Lumiere declined to comment and a spokesman for Visium didn't immediately respond to a request.

Preet Bharara, U.S. Attorney for the Southern District of New York, speaks during a news conference on Las Vegas sports bettor William

A one-time portfolio manager at a

Stefan Lumiere was found guilty of inflating bond prices in Visium Asset Management's credit fund, Bloomberg reported.

Here's Bloomberg:

"Prosecutors said Lumiere solicited sham quotes from brokers to justify inflated valuations on distressed-debt holdings. Jurors rejected his claim that he thought the prices he was assigning were legitimate and done at the behest of his boss, who pleaded guilty and testified against him."

Lumiere is the ex-brother in law of Visium's founder, Jake Gottlieb, a physician who founded the firm, which became known for investing in healthcare stocks.

Sanjay Valvani, a star fund manager overseeing the firm's healthcare fund, committed suicide last year days after he was accused of insider trading. Gottlieb hasn't been accused of any wrongdoing.

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