On February 3, the UK Financial Services Authority (FSA) announced that it had banned Simon Treacher, a London-based hedge fund manager and fined him £140,000 (approximately $218,000) for deceiving investors by mismarking funds he managed and misleading the FSA during its investigation.
Simon Treacher was an FSA approved person employed by BlueBay Asset Management plc as a senior fund manager in Blue Bay’s emerging markets team. For a period of several months in 2008, he physically cut out and pasted different figures on to hard copies of documents used in the valuation process of assets of the funds he managed. Mr. Treacher then provided misleading information about his conduct to the FSA during its investigation.
The fraudulent alterations led to an apparent increase of approximately $27 million in the value of the funds in question. This resulted in investors being financially disadvantaged by approximately $650,000. The FSA stated that BlueBay had fully compensated the investors and that it made no criticism of BlueBay in connection with this investigation.
Mr. Treacher agreed to settle at an early stage of the FSA’s investigation, thereby qualifying for a 30% reduction in the fine which would otherwise have been £200,000 (approximately $312,000).