Alberto Micalizzi, chief executive of London-based hedge fund company Dynamic Decisions Capital Management (DDCM), has been fined £3m and banned from working in financial services by the Financial Services Authority (FSA) for lying to investors and concealing losses.
This is biggest fine issued by the FSA to an individual not involved in abuse of stock markets.
The FSA alleges that between 1 October 2008 and 31 December 2008, a fund managed by DDCM suffered a $390m (£248m) loss, and that to cover up for it, Micalizzi entered into a number of contracts for the sale and purchase of a fake bond to artificially create a $400m (£255m) gain.
The watchdog said Micalizzi used at least $7.5m (£4.7m ) of the fund investors’ money in relation to the bond contracts, despite knowing the bond was not genuine.
Micalizzi is appealing against the finding and has referred the matter to the tribunal.
More like this:
Five whopping great corporate fines – and the scandals that incurred them
Carillion was ‘like a ponzi scheme’ with a ‘culture of fear’
Leave a Comment