Sun, May 26, 2013
A A A
Welcome Guest
Free Trial RSS
New! Family Office and Investor Database with 11,750 contacts
Alternative Market Briefing

UK FSA issues record £3m fine against hedge fund boss
Wednesday, May 30, 2012

Bailey McCann, Opalesque New York: The Financial Services Authority (FSA) in the UK has banned Alberto Micalizza, manager of London-based Dynamic Decisions Capital Management from conducting regulated financial business and fined him £3m for failing to run his business prudently. The regulator has also stopped the fund itself from conducting business. The hedge fund racked up millions in losses during the credit crisis and the fine is a record for a penalty given to an individual in a non-market abuse case.

According to the FSA, Micalizza lied to investors in order to hide his extensive losses of more than $390m almost 85% of the total value of his fund. According to a Reuters investigation, the fund's main investment was $500m in highly illiquid bonds issued by a company in a trailer-park suburb of Phoenix, Arizona by someone on the run from authorities in the US.

Micalizzi is also charged with the purchase and resale of a batch of fake bonds. In its decision notice, the regulator stated that "the bond was not a genuine financial instrument and that Micalizzi was aware of this when he entered into the contracts," and that he did this to falsely counterbalance his growing losses and post a monthly profit.

In an emailed statement to Financ......................

To view our full article Click here
Article link
Banner
Today's Exclusives Today's Other Voices Banner More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing
  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Exclusive: Endurance Series Trust launches first mutual fund, multi-series trust[more]

    Bailey McCann, Opalesque New York: Endurance Series Trust, a multi-series trust, is launching with Gator Capital Management, LLC as the adviser for the Trust’s first mutual fund series. Endurance Fund Services, LLC, an independently owned and operated fund administration company will serve as t

  2. North America – Students are launching hedge funds on colleges across America[more]

    From Valuewalk.com: …From Cornell, whose student-run hedge fund beat Wall Street returns to the University of Michigan, which allows its students to manage as much as $250,000, student hedge fund are becoming a more prominent part of financial education. Their success has attracted the attention of

  3. Comment – Can hedge funds survive Bernanke?[more]

    From Bloomberg.com: …The biggest reason for the market tranquility might be the Federal Reserve's repeated assurances that it will maintain zero interest rates and provide monetary stimulus until the economy recovers, and unemployment ebbs. That may just account for the recent flurry of storie

  4. Comment – Paul Tudor says women find it difficult to be successful macro traders because breastfeeding kills their focus[more]

    From Womensagenda.com.au: Another billionaire believes he has some wise words about women, but this time they're probably not going to be as productive as Warren Buffett's. According to hedge fund billionaire Paul Tudor Jones, women find it difficult to be successful macro traders because breastfeed

  5. SRI investment volume and performance: Study shows alternative investments in SRI jumped 16% in 2010. Additionally, a new meta-analysis examines the financial performance of SRI, finds 'positive performance tilt'
Click here for More about Opalesque Tracking
- A new, unique Premium Service -
  1. MGH
  2. NZARA
  3. 36 South
  4. Cultivar
  5. New Zealand
  1. Anchorage
  2. people
  3. MS
  4. King Street
  5. bridgewater