Hedge fund manager is banned and fined by FSA
Thursday 04 February 2010
A millionaire hedge fund manager was yesterday thrown out of the City for massaging his performance figures.
Simon Treacher, an emerging markets specialist who helped run a £900m fund for BlueBay Asset Management, was also fined £140,000 for his transgressions, which at one point inflated the value of his fund by $11.8m.
But the Financial Services Authority's ban, which leaves his career in ruins, stands as by far the biggest penalty, depriving him of the huge earnings commonplace among Mayfair's hedge fund community.
Mr Treacher admitted concocting a "cut and paste" scheme to artificially boost the value of his fund. He altered seven documents used in support of the month-end valuation for specific assets by printing legitimate broker quotes valuing them, but carefully cutting out and pasting different figures on to the relevant valuation lines, copying the altered document, and then submitting the altered copied version as the original quote.
The total valuation errors in July, August and September 2008 amounted to $27m as a result of the scheme.
The FSA said Mr Treacher's actions resulted in investors being financially disadvantaged by approximately $650,000 for which BlueBay has fully compensated them.
The watchdog further said that after being alerted to the issues by BlueBay, Mr Treacher "then provided misleading information to the FSA about his conduct during its investigation".
The FSA made no criticism of BlueBay and Mr Treacher – who ultimately settled the case early and will not appeal – no longer works at the firm.
Margaret Cole, FSA director of enforcement and financial crime, said: "Our actions in banning Simon Treacher and imposing a significant fine will send a powerful message of deterrence to others who might be tempted to behave in this way. His conduct, both in mis-marking the funds and his dealings with us as the regulator, lacked integrity. Treacher's actions undermined BlueBay's independent valuation process and disadvantaged investors in the affected funds."
- 1 Katie Hopkins attacked me on Twitter — so I reported her to the police for inciting racial hatred
- 2 Google April Fools': company unveils backwards search engine and huggable digital assistant
- 3 I might be an MP, but that doesn't stop me fighting sexism with my breasts
- 4 April Fools' Day 2015: The best hoax news stories from around the internet
- 5 Gamers confess the worst things they've done in The Sims
Holborn fire: Chaos as 2,000 people evacuated to escape toxic smoke filling central London
University of Cambridge: Remains of 1,300 scholars are found under building
April Fools' Day 2015: The best hoax news stories from around the internet
April Fools' Day 2015 live: The best pranks and fake stories from around the world
Jeremy Clarkson 'could be given minder' ahead of a potential Top Gear return
Street preacher quoting from the Bible fined for calling homosexuality an 'abomination'
Katie Hopkins attacked me on Twitter — so I reported her to the police for inciting racial hatred
Woman filmed launching racist tirade against men on the Tube for speaking in 'own lingo'
David Cameron calls Labour 'hopeless, sneering socialists' while announcing 7-day NHS plans
Revealed: Putin's army of pro-Kremlin bloggers
Katie Hopkins reported to the police for race hatred by Labour MP Simon Danczuk after tweet about Pakistani men
iJobs Money & Business
£20000 per annum + commission: SThree: Sthree have an exciting opportunity for...
£18000 - £32000 per annum: Recruitment Genius: A Telesales Executive is requir...
£45000 - £50000 per annum + benefits : Ashdown Group: A highly successful, glo...
£50,000 - £55,000: Neil Pavier: Are you a professionally qualified commercial ...