Paul Taylor, former CEO of Blue Horizon Asset Management (BHAM) has been fined £489,000 and banned from working in financial services by the FCA for acting ‘dishonestly’ during the attempted acquisitions of a UK bank and Reading Football Club.
Esmeralda Toni, the firm’s former managing director, has also been fined £121,200 for serious misconduct and banned by the regulator.
The UK regulator, the FCA, said Taylor made misleading statements and falsified information during two separate attempted acquisitions while at BHAM.
While attempting to acquire a UK bank, it said that Taylor falsified, or arranged to be falsified, documents claiming he owned a bond portfolio worth approximately €200m. The regulator said Toni knowingly assisted Taylor by making misleading statements to the bank and helping falsify the documents.
According to the FCA, Taylor knew, and Toni understood it was likely, that the statements and documents would be relied upon by both the FCA and the Prudential Regulation Authority as part of their assessment of the proposed acquisition.
Toni was later interviewed as part of BHAM’s internal investigation into the events. During the investigation, she denied providing misleading statements and being involved in the creation of false documents.
On a separate occasion, Taylor attempted to acquire Reading Football Club. The FCA said he again made misleading statements, falsely claiming to own the €200m bond portfolio to support the acquisition.
The regulator found that Taylor and Toni had acted dishonestly over an extended period, and said their actions were intended to mislead BHAM colleagues, counterparties and regulators.
Therese Chambers, joint executive director of enforcement and market oversight at the FCA, said: “Trust in financial services relies on those working in it to be honest. Mr Taylor and Ms Toni fell woefully short of even this minimum expectation.
“They lied and lied again, first for commercial gain and then to cover their backs. They have no place in our industry.”
The FCA said both Taylor and Toni breached Individual Conduct Rule 1, which requires individuals to act with integrity.
The FCA has banned both individuals from performing any function in relation to regulated activities, having concluded that they are not fit and proper persons.
