Former New Canaan Man Gets 13 Years for Ponzi Scheme

A federal judge on Thursday sentenced a 45-year-old former New Canaan resident to 13 years in prison for his role in a Ponzi scheme that saw investors defrauded out of hundreds of millions of dollars. Francisco Illarramendi will face three years of supervised release following his imprisonment, which also defrauded the creditors of hedge funds that he managed, according to a press release issued by the office of the United States Attorney, District of Connecticut. Francisco Illarramendi is accused of obstructing the investigation into his conduct, according to the U.S. Department of Justice. For more than five years, his “severely misguided attempt to conceal an initial loss of $5 million ballooned into an elaborate fraud scheme that caused investors and creditors to lose hundreds of millions of dollars,” First Assistant U.S. Attorney Michael J. Gustafson said in the press release. “Through it all, he still managed to live well, receiving more than $20 million in personal benefits.