An investment adviser in his 70s was found guilty on Thursday on charges he defrauded clients by funneling money to a New York horse racing firm and small, thinly traded companies in exchange for secret kickbacks. A federal jury in New York found James Tagliaferri, who managed TAG Virgin Islands, Inc in St. Thomas, guilty on 12 of 14 counts including investment adviser fraud, securities fraud, and wire fraud. A mistrial was declared on two other counts after jurors were unable to reach a verdict, a court clerk said, and U.S. District Judge Ronnie Abrams set sentencing for Nov. 7. Scott Tulman, Tagliafferi's lawyer, in an email said his client "continues to maintain that at no time did he ever intend to hurt his clients - some of whom were friends of his for decades." A spokesman for Manhattan U.S. Attorney Preet Bharara had no immediate comment. Prosecutors said Tagliaferri, 75, invested more than $120 million of funds he oversaw at TAG Virgin Islands in private or illiquid companies
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