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Tribunal upholds Dynamic Decisions CEO fine

Wednesday 6th August 2014

The Upper Tribunal has upheld the judgement made by the Financial Conduct Authority (FCA) on former hedge fund CEO Alberto Micalizzi.
The FCA initially fined Micalizzi £3 million for failing to act with integrity when acting for Dynamic Decisions, a defunct hedge fund. The Tribunal has directed the FCA to reduce the penalty to £2.7m.
The Dynamic Decisions Growth Premium Master Fund was marketed by Dynamic Decisions Capital Management – of which the CEO was Micalizzi - as having a low risk, highly liquid, market neutral strategy.  
In the final quarter of 2008, the Fund suffered massive losses amounting to approximately 85% of its value.  Micalizzi sought to conceal these losses from investors by deliberately misrepresenting the Fund’s value and subsequently entering into agreements with third parties to acquire units with a face value of US$ 700 million in purported convertible bonds issued by a Nevada based company backed by Russian diesel oil.  
In a statement The Tribunal said: “Mr Micalizzi deliberately misrepresented the position to the investors, and failed to provide them with information as to the true position, even when it was clear that they had been misled by the original information.  Such conduct can only be dishonest.”

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