Micalizzi Fined, Barred For Hedge Fund Fraud

May 29 2012 | 1:19pm ET

Former hedge fund manager Alberto Micalizzi has received the largest fine against any individual in a non-market case in the U.K. Financial Services Authority's history.

The FSA ordered Micalizzi to pay £3 million and barred him from the securities industry, it said today. The regulator said the Italian business school professor was not "fit and proper" to manage money.

"Alberto Micalizzi's conduct fell woefully short of the standards that investors should expect and behavior like his has no place in the financial services industry," FSA acting enforcement chief Tracey McDermott said.

The FSA also revoked the license of Micalizzi's firm, Dynamic Decisions Capital Management.

According to the agency, Micalizzi lied to investors about huge losses at Dynamic Decisions. The firm first ran into trouble in 2009 but was cleared by the U.K. Serious Fraud Office in July 2010 due to lack of evidence. The probe was reopened by the FSA and Italian authorities last year, with the latter raiding Micalizzi's home and office.

The renewed investigation followed an August Reuters report that found almost all of Dynamic Decisions' US$550 million in assets were invested in highly illiquid bonds issued by a company based in a trailer park outside of Phoenix and backed by a global network of shell companies. In addition, the report said that the Phoenix company was led by a fugitive from justice in the U.S. and the head of one of the charities that backed the bonds was a Russian fraudster.


In Depth

Q&A: Brevan Howard’s Charlotte Valeur Talks Strategy

Sep 18 2014 | 11:18am ET

Charlotte Valeur chairs the board of Brevan Howard Credit Catalysts, an LSE listed...

Lifestyle

Hedgies Rock Out For Children's Charity

Sep 15 2014 | 8:40am ET

It's that time of year again—when hedgies trade in their spreadsheets for guitars...

Guest Contributor

Volkered: How Financial Sector Reforms are Creating Opportunities for Hedge Funds

Sep 16 2014 | 11:28am ET

New regulations have dramatically curtailed proprietary trading activity in investment...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

September 2014 Cover

The London Whale: Rogue risk management

Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.