Judge keeps bail for convicted hedge fund adviser

BRIDGEPORT, Conn. (AP) — A judge declined to revoke bail for a former Connecticut hedge fund adviser awaiting sentencing for a major fraud scheme after prosecutors said he failed to disclose a tax refund despite an asset freeze.

Francisco Illarramendi pleaded guilty last year to fraud and conspiracy to obstruct justice in a scheme to conceal huge losses.

Illarramendi has been under house arrest in New Canaan while awaiting sentencing Oct. 30.

Prosecutors requested his bail be revoked, saying he used the tax refund of more than $600,000 on a Mercedes Benz and lawyers.

U.S. District Court Judge Stefan R. Underhill sharply criticized Illarramendi on Friday, but concluded he didn't pose a serious flight risk.

His attorney said he's cooperated extensively with authorities and planned to replace the refund with money from a friend.