Tuesday, 24 May 2016
Last updated 21 min ago
Jul 31 2014 | 11:41am ET
Former hedge fund manager Albert Micalizzi, behind bars for fraud, will remain barred from the British financial industry.
The U.K. Upper Tribunal this week upheld the Dynamic Decisions Capital Management founder’s ban, finding he had “deliberately misrepresented” the hedge fund’s positions to investors. The appeals panel did cut his fine by 10% to £2.7 million, citing financial hardship.
Micalizzi was arrested two months ago on criminal fraud charges in Italy, two years after British regulators fined and barred him. He was accused of 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.
Those bonds were “never genuine,” the tribunal found, adding that “Micalizzi’s conduct was dishonest n many instances and overall lacked integrity.”