Alberto Vilar

Alberto Vilar
Born	Template:Birth date West Orange, New Jersey, U.S.
Died	September 4, 2021(2021-09-04) (aged 80)
Occupation(s)	Investment manager, philanthropist
Known for	Support of opera companies and performing arts; convicted of securities fraud

Alberto Vilar, sometimes referred to as Albert Vilar (October 4, 1940 – September 4, 2021), was an American investment manager recognized for his extensive support of opera companies, performing arts groups, and educational institutions. After the downfall of his company, Amerindo Investment Advisors, he was found guilty in 2008 on charges including money laundering and securities fraud, resulting in a nine-year incarceration. He was released in 2018.

Background

A native of West Orange, New Jersey, Vilar obtained a degree in economics from Washington & Jefferson College and later earned a master's from Iona College. In 1979, he co-established Amerindo Investment Advisors alongside Gary Tanaka, with offices in San Francisco, New York, and London. Amerindo focused on technology funds that were severely impacted by the 2000 stock market downturn, causing a significant drop in fund value and leading Vilar to default on his commitments to arts donations.

Vilar also held a position on the Board of Trustees at Washington & Jefferson College.

Philanthropic Contributions to Opera and Arts Organizations

Vilar made large pledges to various cultural institutions, including:

• The Royal Opera House, Covent Garden (ROH), where the Floral Hall was named "Vilar Floral Hall" following a £10 million commitment in 1999. However, only a portion was fulfilled, resulting in the atrium being renamed in 2005. He also supported the "Young Artists Programme," production sponsorships, and seat back dedications.
• The Salzburg Festival benefited from its largest donation ever made by Vilar, who featured prominently in its program materials.
• Approximately $45 million was pledged to the Metropolitan Opera, with $12 million actually contributed, ranking him as its third-largest benefactor.
• The Kirov Opera at the Mariinsky Theatre in Saint Petersburg received around $14 million from Vilar, primarily directed toward the summer White Nights Festival.
• Washington DC's Kennedy Center received funds for establishing the "Vilar Institute for Arts Management" along with pledges totaling $50 million in 2001; however, actual payments fell short, prompting alternative fundraising strategies.
• Both the Washington National Opera and Los Angeles Opera, connected through Plácido Domingo, were each promised $10 million by Vilar.
• The establishment of the Maazel-Vilar Conductor's Competition.
• In 2002, New York University initiated the Alberto Vilar Global Fellows in the Performing Arts program backed by a $23.4 million donation aimed at attracting emerging artists.
• In Colorado, the Vilar Center for the Arts and Ford Amphitheater/Vilar Pavilion were created in Beaver Creek and Vail respectively.
• At Washington & Jefferson College, a multimillion-dollar pledge intended for a technology building led to a downsized project due to funding deficiencies; the facility was ultimately named simply "Technology Center."
• The Vilar Distinguished Artist Series at Washington & Jefferson College showcased performers such as Lorin Maazel and Susan Graham.

In acknowledgment of his generosity, Vilar received the National Arts Award for "Corporate Citizenship in the Arts" from Americans for the Arts in 2002.

After undergoing complicated back surgery in 2002 that nearly resulted in his death, speculation arose that his health issues affected his capacity to honor pledges. Despite severe financial losses following the technology stock collapse, he continued making substantial commitments—including $5 million toward voice loss research after meeting Julie Andrews and $30 million to an opera company in Berlin—many of which remained unpaid.

Fraud conviction

On May 26, 2005, Vilar and Tanaka were taken into custody on allegations of securities fraud. Authorities accused them of diverting up to $5 million from Amerindo client Lily Cates for personal expenditures, with Vilar using the funds for home renovations and pledged charitable contributions, while Tanaka invested in thoroughbred racehorses. Additionally, the SEC initiated a civil lawsuit.

A New Yorker report noted that at the time of his arrest, Vilar asserted he was nearing a financial recovery despite facing fines surpassing $10 million and potential sentences totaling 155 years. He also emphasized his ongoing dedication to philanthropy and the arts.

The charges did not implicate any misconduct involving Amerindo’s mutual funds, and no client funds were missing when the firm ceased operations. Nevertheless, Morningstar recommended that investors redeem their shares due to underperformance and increasing expense ratios caused by continued redemptions. During the investigation, authorities seized company records, prompting Amerindo’s board to consolidate its fund with Munder Capital Management’s Munder NetNet (later renamed Munder Internet). A federal judge subsequently deemed these seizures excessive.

The trial commenced in September 2008, with Vilar represented by Herald Price Fahringer and Tanaka by Glenn Colton. By November 2008, the jury found Vilar guilty on all 12 counts and Tanaka guilty on three.

On February 5, 2010, sentencing resulted in a nine-year prison term for Vilar and five years for Tanaka. Both were featured in the fifth season of American Greed. In October 2012, after serving more than two and a half years at Fort Dix Federal Correctional Institution, an appeals court ordered Vilar’s release pending appeal despite opposition from prosecutors. They were returned to incarceration in November 2013. In April 2014, Vilar received an additional one-year sentence for obstructing victims’ efforts to recover lost assets.

Consequences of his failures to pay promised donations

During a 2000 conversation with Philipp Blom, Vilar estimated that over the prior ten years he had pledged approximately $150 million to opera houses and performing arts institutions.

Following his failure to honor these commitments, numerous organizations began removing his name from prominent displays.

In July 2005, the Royal Opera House announced it would eliminate Vilar’s name from its building due to unpaid pledges. His name was also withdrawn from its young artists program once a new sponsor was secured.

At the Metropolitan Opera, the "Vilar Grand Tier" was renamed after he defaulted on payments. Likewise, the Washington Opera’s young artists program adopted the name "Domingo-Cafritz Young Artist Program" after obtaining alternative funding. The Kennedy Center’s "Arts Management Fellowship" dropped Vilar’s name as well; this fellowship was later supported by Betsy and Richard DeVos and relocated to the University of Maryland.

External links

• Steve Hamm, "This Opera Lover Is Singing Again", Business Week, July 5, 2004 article covering his "comeback"
• "Once a billionaire, now a prisoner", CNN.com article dated May 30, 2005
• "Alberto Vilar Spends More Time in Jail While His Amerindo Investment Advisers Teeters on the Brink", detailed account of charges against Vilar
• Russel Kinnel and Dieter Owen Bardy, "Amerindo Founders Jailed on Fraud Charges", Morningstar coverage from June 3, 2005
• Vilar Center for the Arts at Beaver Creek official site
• SEC complaint against Amerindo entities, Techno Raquia, Alberto W Vilar, and Gary Alan Tanaka