Prominent owner Gary Tanaka was convicted on Wednesday after a nine-week jury trial in Manhattan federal court on charges related to an alleged scheme to defraud investors.

Tanaka was found guilty on three counts of securities fraud, but not guilty of money laundering. Alberto Vilar, his partner in the now defunct Amerindo Investment Advisers Inc., was found guilty of fraud and money laundering. Both men face maximum sentences of 20 years in prison.

Prosecutors built their case largely around the alleged misappropriation of a $5-million investment by Lily Cates, the widow of former 505 Farms owner Marshall Naify. Cates was an Amerindo client for 18 years.

Tanaka and Vilar were arrested in May 2005. Tanaka was granted bail, but he was forced to surrender his passport and placed under house arrest at his son’s Manhattan apartment.

Tanaka’s racing stable has continued both in the United States and in Europe. This year, he won the Mervin Muniz Jr. Memorial Handicap (G2) at Fair Grounds with Proudinsky (Ger).

Tanaka, 65, owned 2002 champion turf female Golden Apples (Ire), and his other top runners have included Grade or Group 1 winners Rakti, Caitano (GB), Star Parade (Arg), Epalo (Ger), Dernier Empereur, Pico Central (Brz), and Sarafan.