A former private equity fund manager has been indicted in connection with the alleged embezzlement of US$11.3 million from a fund that he managed.
In a federal indictment, a grand jury in Puerto Rico charged Gian Piovanetti — a former registered rep with Popular Securities LLC in San Juan — with one count of embezzlement of bank funds, five counts of money laundering and one count of conspiracy to commit money laundering.
According to court filings, between May 6 and July 1, 2024, Piovanetti allegedly engaged in a series of unauthorized asset transfers from the deposit account of a private equity fund that he managed, which were used for a variety of personal uses.
“These transactions were unrelated to the allowable investments under the fund, were not approved by the fund’s investment committee, and lacked a valid purpose for a private equity fund,” U.S. authorities alleged.
In 2025, Piovanetti was barred by the U.S. Financial Industry Regulatory Authority Inc. for allegedly failing to respond to a request for information from the regulator in the wake of his termination by his former firm in 2024 — after an internal review discovered unauthorized transactions involving a private equity fund.
The allegations have not been proven.