The 2008 fraud conviction of Alberto Vilar, founder of Amerindo Funds, was upheld by a U.S. appeals court, Reuters' Jonathan Stempei reports, but Circuit Judge Jose Cabranes ordered that he be resentenced. The resentencing was ordered due to a 2010 U.S. Supreme Court decision, Morrison vs. National Australia Bank, that stated a federal law meant to fight securities fraud didn't cover investments done outside the U.S., Stempei writes. Cabranes added that math errors were made, requiring that the forfeiture amount be recalculated., Stempei reports.

Stempei interviewed Hannah Buxbaum, interim dean at Indiana University's Maurer School of Law, whom he quoted as saying on the Morrison decision, "Morrison diminished the government's ability to address many forms of cross-border misconduct, and we're now seeing that play out for the Department of Justice."

Vilar first saw speculation on his finances when he was unable to make good on charitable gifts he had promised, with Vilar owing $1.5 million on a $3.5 million pledge for the Gerald Ford Amphitheater stage and he never made a $25 million donation to the National Jewish Medical and Research Center.

Vilar and Gary Tanaka were charged with fraud and arrested in 2005 on accusations that they took millions of dollars of investor money to make charitable donations, purchase racehorses and cover business expenses.

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Edited by: Casey Quinlan


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