Dr Gary Tanaka and business partner Alberto Vilar were arrested yesterday for allegedly using investors' money for personal spending.
An investor with their company, Amerindo Investment Advisors Inc., claims that $5 million invested with their company was missing, have been deposited into Vilar's personal Panamanian bank account, which was overdrawn by $428,122 at the time, and used by Vilar to pay off various personal debts.
According to CNN, Both Vilar and Tanaka are charged with "three counts of scheming to defraud, obtain money by false pretense and wire investor funds across state lines with the intent of converting the money to personal use."
It is alleged that this money was also the source of a $540,000 donation made by Vilar to his former College, Washington & Jefferson College, who were apparently going to name a building after their suddenly beloved alumnus (and what College wouldn't?)
A separate allegation suggests that Tanaka used Investors' funds to purchase at least three Thoroughbred racehorses.
However, there is no suggestion that any funds donated or offered to Imperial College were misappropriated. The College's new director of communications has said that the situation is "a matter for Dr Tanaka and not a matter for Imperial College."
Should the pair be found guilty, it is as yet unknown whether Imperial may consider renaming their business school after a more suitable role model for their students; i.e. one more adept at not getting caught.
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