The Rogue Financier Busted

9783862484249_s

Florian Wilhelm Jurgen Homm was arrested today in Florence.  Homm is being accused of conspiracy and fraud.  He is the founder and former chief investment officer of Absolute Capital.  He found himself in a bad situation holding illiquid stocks and he decided to deal with the situation.  He inflated the value of the stocks that he owned by “cross trading” which is buying and selling the same stock from one account to another account owned by the same portfolio manager.  After inflating the stock he dumped his shares and resigned from Absolute Capital.  He is believed to have made $53 million from this and brought loss worth $200 million to investors.  He wrote a book called “Rogue Financier: The Adventures of an Estranged Capitalist” in which he described some of his adventures like stashing hundreds of thousands of dollars in his underwear on airplanes.  He has even threatened his employees with death by telling them of his “mob connections”.  Can someone say “employer of the month?”

Written by: Toma Karamanolev

Source: http://www.bloomberg.com/news/2013-03-08/fugitive-hedge-fund-manager-homm-arrested-at-gallery.html

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