Belfast Telegraph

£3m fine for trader who 'lied about huge losses'

By Jim Armitage

A hedge fund manager accused by the Financial Services Authority of lying to investors about "catastrophic losses" has been fined a record £3m by the watchdog.

Alberto Micalizzi (43) whose $500m (£318m) Dynamic Decisions London hedge fund collapsed in 2009, has also been banned for life from working in regulated financial services.

The FSA alleges that, following more than $390m of losses in Dynamic's fund after the collapse of Lehman Brothers, Micalizzi lied about the deficit and launched a bond on which he booked a profit for the fund of more than $400m. The FSA claims the bond was set up purely to cover up the fund's losses.

Tracey McDermott, the FSA's acting enforcement director, said: "Alberto Micalizzi's conduct fell woefully short of the standards investors should expect and behaviour like this has no place in the financial services industry."

The FSA also said Micalizzi repeatedly provided it with false and misleading information.

He is appealing against the finding and seeking to get it overturned at a tribunal.

In a lengthy rebuttal statement, his lawyers said: "Quite simply, the picture painted by the FSA ... is artificial."