Plaford and Lumiere were charged over separate allegations that they used sham broker quotes to mismark the value of securities, inflating returns, and generated more than $5.9 million in extra fees, the U.S. said.
Plaford helped oversee the Visium Credit Opportunities fund, which returned 32 percent in 2010 before fizzling out when it closed in 2013, according to people with knowledge of the matter.
Valvani pleaded not guilty and was released on a $5 million bond. Lumiere was released on a $1 million bond.
Gottlieb has also been involved in a high-profile divorce battle with Lumiere’s sister, Alexandra, over a prenuptial agreement that she signed shortly after she became pregnant with their second child. They were married in 2007, and Gottlieb filed for divorce in 2012, according to court papers. Lumiere left Visium the following year, according to his LinkedIn.com profile.
Alexandra lost a suit contesting the agreement, and will receive about $1.6 million, in addition to childcare expenses. Gottlieb, who reported a net worth of $188 million in 2013, will provide her and her children with a luxury apartment in New York City where she and their children will live while they are growing up.