Enrique F. Villalba, Jr., a Beachwood investment manager who has been the center of a federal investigation, was sentenced to 8 years in prison yesterday. While this news brings some relief to the 27 investors who were victimized by Mr. Villalba, it still leaves many wondering if they will ever be able to recover any of their investment losses.
According to federal officials, Mr. Villalba’s elaborate investment scheme cost investors $30.4 million. Mr. Villalba was able to attract investors’ money by touting his investment methodology that supposedly involved a conservative approach to investing. Court documents state that he told investors that he would place stop orders to safeguard their principal investments. Mr. Villalba invested the money in commodities futures contracts and didn’t put these stop orders in place, which ultimately caused his investors’ to lose money.
Will investors be able to recover their losses?
Based on our experience with cases similar to Mr. Villalba’s, we believe that his victims may be able to recover some or all of their investment losses. After spending several hours interviewing Mr. Villalba before his sentencing, I am very familiar with how he operated his investment scheme. I have also reviewed trading confirmations and account statements, as well as the investment strategy used by Mr. Villalba.