According to a USAO press release, William Landberg, 61, former Chairman and CEO of West End Financial Advisors, LLC, was sentenced March 18, 2013 to 42 months in prison for his participation in an $8.7 million investment scheme. LANDBERG pled guilty in November 2011 to one count of securities fraud before U.S. District Judge Laura Taylor Swain, who also imposed today’s sentence.
West End was a boutique financial services firm located in New York, New York, specializing in alternative investment opportunities and traditional asset management for various types of clients, including institutions and high net worth individuals. West End served as the investment manager for various partnerships it established as investment vehicles or investment funds and raised money for them through the sale of limited partnership interests. In addition to serving as West End's Chairman, CEO, and Manager, Landberg also served as the Chairman of Sentinel Investment Management Corporation (“Sentinel”), an investment adviser registered with the U.S. Securities and Exchange Commission (the “SEC”) that shared office space with West End. (UASO press release)
Landberg obtained three loan advances from West LB totaling $8.7 million – all purportedly for Hard Money Fund transactions. But instead, he diverted diverted the funds to other uses, including for his own benefit. He also put some of the money into a separate fund managed by West End.
Judge Swain sentenced Landberg to serve 3 years supervised release with 18 months home confinement after his prison term. He was ordered also to forfeit $8.7 million and to pay $1.125 million in restitution.
U.S. Attorney Preet Bharara praised the work of the Federal Bureau of Investigation and thanked the SEC for its assistance in the investigation.