Saturday, 1 November 2014
Last updated 18 hours 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.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Traders form habits quickly. Understanding these and their effects can better equip us to decipher actual market moves.