Alberto Vilar's Fat Lady Has Sung

How do we know it will be many years before any potentially corrupt financiers end up in jail for their role in causing this credit crisis? Because we're still mopping up from the tech bust nearly eight years later.

A federal jury in New York delivered a guilty verdict today for Alberto Vilar, a former money manager at Amerindo Investments and a notable philanthropist who was charged with conspiracy and securities fraud. Prosecutors accused Vilar of embezzling money from his clients after Amerindo's funds plunged in value during the beginning of the tech bust in 2000 so that he could support his lavish lifestyle and fund his charitable gifts.

Vilar was found guilty on all 12 charges brought against him and he faces as many as 20 years in prison. His Amerindo partner, Gary Tanaka, was found guilty of three charges.

Vilar's case was notable for several reasons. First, one of the key witnesses called by the prosecutors was Lily Cates, mother of the Fast Times at Ridgemont High actress Phoebe Cates. Lily, who was an Amerindo client and a friend of Vilar's, testified that Vilar and Tanaka stole $5 million from her. An Amerindo employee also testified that she cut and pasted Cates' signature on a money transfer authorization under Tanaka's orders.

Vilar's almost addict-like dedication to the arts was another interesting twist to this case. The money manager was a top benefactor for opera houses in New York, Los Angeles, and Washington, DC. He continued to commit tens of millions of dollars to his causes long after his money disappeared, and his subsequent failure to honor them caused its own set of problems for the recipients, as James Stewart reported in a profile of Vilar in the New Yorker in 2006.

Now Vilar must face the prospect of spending years in jail without his beloved operas.

by Megan Barnett