Homm Indicted For Fraud

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.


In Depth

Q&A: Portfolio Advisors' Brian Murphy On The Advantages of A Private Markets Platform

Jan 2 2018 | 11:05am ET

Most private markets firms reference their platforms as a source of competitive...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Steinbrugge: The Top Hedge Fund Industry Trends for 2018

Jan 2 2018 | 12:22pm ET

Each year, Don Steinbrugge’s Agecroft Partners compiles the insights gained...

 

FINalternatives Trending

From the current issue of