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Fugitive in hedge fund scam nabbed in Italy gallery |

Fugitive in hedge fund scam nabbed in Italy gallery

Florian Wilhelm Jurgen Homm, the German hedge fund manager who has been a fugitive for more than five years, was arrested on Friday at the Uffizi Gallery in Florence on U.S. fraud charges.

Homm, 53, is accused of causing at least $200 million in losses to investors in hedge funds operated by Absolute Capital Management Holdings Ltd., according to a statement by the U.S. Attorney’s Office in Los Angeles. He was arrested by Italian authorities.

Federal prosecutors in Los Angeles filed a criminal complaint on Wednesday charging Homm with conspiracy and fraud. The founder and former chief investment officer of Absolute Capital is accused of “cross- trading” hundreds of millions of shares of penny stocks between the company’s funds to boost the value of the otherwise illiquid stocks.

He went on the lam in September 2007.

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