(adds details from arrest warrant)
MILAN May 21 Italian police have arrested a
former university lecturer and ex-hedge fund manager who was
fined 3 million pounds ($5.1 million) in 2012 for concealing
massive losses to investors, Milan prosecutors said on
In a statement, prosecutors said they had also issued arrest
warrants for 14 associates of Alberto Micalizzi, who has been
dubbed by the Italian press as the Italian equivalent to U.S.
fraudster Bernie Madoff.
In a 168-page arrest warrant seen by Reuters, prosecutors
allege that Micalizzi was the head of two parallel criminal
rings that carried out sophisticated fraud involving forgery of
financial documents against a range of companies.
The companies targeted by Micalizzi and his network include
gas operator Snam, Pirelli, JP Morgan
, UBI Banca and UBS Monaco.
Fraudulent acts continued well after Britain's Financial
Services Authority banned Micalizzi in May 2012 saying he was
not "fit and proper" to perform any role in regulated financial
Micalizzi was the chief executive of the now defunct
London-based Dynamic Decisions Capital Management fund. The
fund, which had mainly invested in fake bonds, was liquidated
after racking up losses amounting to more than 85 percent of its
For a special report on Micalizzi's bond scheme
The second line of fraudulent activities highlighted by
prosecutors in the arrest warrant involved the alleged issuing
of forged bank guarantees aimed at getting financing for
In one example mentioned in the arrest warrant, some of
Micalizzi's associates were able to obtain in November 2011
financing worth 19 million euro euros from JP Morgan's Milan
subsidiary thanks to bank guarantees forged in the name of BNP
Paribas' Italian unit BNL, and other forged documents
These funds were quickly revoked after the internal
compliance of JP Morgan decided to carry out a thorough check
and found out the documents were false. JP Morgan formally
denounced the fraud to Milan magistrates on Jan. 23, 2012.
A spokesman for Snam, which investigators say lost 30
million euros in the fraud, told Reuters that the company had
found out that it had been given false financial guarantees when
it carried out checks in October 2012.
The other companies mentioned in the arrest warrant declined
Micalizzi has taught finance at Milan's prestigious Bocconi
In the arrest warrant, prosecutors said the Italian
financier used his academic title to get access to financial
circles in the country.
A spokeswoman for Bocconi University said Micalizzi, a
researcher who has taught corporate finance, had stopped
teaching in 2011. In 2013, the university suspended him from all
academic duties and stopped paying his salary.
It was not possible to contact Micalizzi for comment.
($1 = 0.5935 British Pounds)
($1 = 0.7302 Euros)
(Reporting by Manuela D'Alessandro, Lisa Jucca and Stephen
Jewkes, Writing by Lisa Jucca; editing by Mark Heinrich)