Tuesday, 3 March 2015
Last updated 1 hour ago
Mar 21 2013 | 1:04pm ET
Former hedge fund manager Florian Homm has been formally indicted on charges that he defrauded investors of US$200 million.
A federal grand jury in Los Angeles yesterday handed down a 10-count indictment for conspiracy, securities and wire fraud, the U.S. Attorney in that city said. Homm faces up to 75 years in prison if convicted.
The flamboyant Homm was arrested a week-and-a-half ago in Italy. He remains jailed in Florence awaiting extradition, although no date has been set for such a hearing.
According to prosecutors and the Securities and Exchange Commission, Homm cross-traded penny shares between funds at his Absolute Capital Management to artificially boost their value. He then allegedly "dumped his shares," resigned from ACM, stuffed US$500,000 into his underwear and other places and fled his Mallorca, Spain, home, for five years in hiding. He reemerged last year to flog his book about his experience.
The criminal case against Homm was brought in Los Angeles because his allegedly illegal trades were made through a brokerage he co-owned in Beverly Hills, Calif.
Jan 23 2015 | 1:00pm ET
In our new section, FINtech Focus, we will profile one of these firms each week. While fintech is a broad category, we will be focusing on firms that specifically cater to the alternative investment industry. Read more…