The two founders of Amerindo Investment Advisors Inc., Alberto Vilar and Gary Tanaka, were charged with fraud by federal prosecutors in Manhattan, according to press reports.
Dow Jones reported that Messrs. Vilar and Tanaka were accused of stealing millions of dollars from investors to make charitable donations and to purchase thoroughbred racehorses.
Prosecutors allege that in 2002, Vilar improperly used money from a client who invested $5 million into a personal account for himself and used it to fulfill pledges he made to two charities.
Further details were unavailable from the firm