Tuesday, 31 May 2016
Last updated 3 days ago
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.