Thursday, 28 July 2016
Last updated 9 hours ago
May 22 2014 | 11:00am ET
Alberto Micalizzi has been fined and barred for allegedly defrauding investors in his Dynamic Decisions Capital Management hedge fund. Now, he’s been arrested for it.
Micalizzi was taken in on a 168-page arrest warrant issued by prosecutors in Milan, Italy. The Italian authorities also plan to arrest 14 of his associates.
Prosecutors said that the former university lecturer led two criminal rings that forged financial documents. The scam allegedly cost victims tens of millions of euros.
Micalizzi was fined and barred by British regulators for allegedly lying to investors about huge losses at Dynamic Decisions, which managed US$550 million. Almost all of those 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, a Reuters investigation found. The Phoenix company was allegedly led by a fugitive and the head of one of the charities backing the bonds was shown to by a Russian fraudster.