Former Associate of Fugitive Florian Homm in Deal With U.S.

  • Homm was arrested in 2013, released from Italian jail in 2014
  • Ex-CEO Ewing to pay $8 million in deferred prosecution pact

The former chief executive officer of Absolute Capital Management Holdings Ltd. agreed to forfeit $8 million as part of a deferred prosecution agreement and cooperate with the U.S. investigation of the hedge fund operator’s fugitive founder.

Sean Ewing, 51, who lives in the United Arab Emirates, won’t have to admit criminal wrongdoing or knowledge of the alleged stock manipulation scheme at Absolute Capital that caused about $200 million in losses when Florian Homm quit in 2007, according to a statement Wednesday from the U.S. attorney in Los Angeles.

Homm, a German citizen, was arrested in Florence three years ago on U.S. fraud charges. He was released from an Italian jail in 2014 after a court there ruled the period for which he could be held waiting for possible extradition to the U.S. had expired. He’s believed to have gone to Germany and remains a fugitive, according to the U.S.

Federal prosecutors accused Ewing, who along with Homm was a co-founder of Absolute Capital, of failing to require Homm and others at Absolute Capital to provide annual holdings and quarterly transaction reports. Homm and three others have been charged with orchestrating a penny-stock manipulating scheme through the company’s eight hedge funds.

Robert Anello, a lawyer for Ewing, had no immediate comment on the agreement.

The case is U.S. v. Ewing, 16-cr-00317, U.S. District Court, Central District of California (Los Angeles).

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