The Financial Markets Tribunal (FMT) has largely upheld the enforcement actions taken by the Dubai Financial Services Authority (DFSA) against Dalma Capital Management Ltd and its senior executive officer Zachary Cefaratti, alleging that they misled the authority and disregarded Dalma’s business activities have carried out the required expertise. Diligence and diligence, it said on Tuesday.
Both the company and the executive were fined $162,500 each, compared to the DFSA’s proposed fines of $170,000 for Dalma and $300,000 for Cefaratti.
Cefaratti is also barred from serving as Dalma’s senior executive officer for two years.
The DFSA originally proposed prohibition and restriction orders against Cefaratti. However, in issuing such orders, the FMT ruled that they would be suspended for two years, on condition that Cefaratti comply with the terms of his order during that period.
After a four-day hearing in September 2022, the FMT issued its decision on January 31, 2023, acknowledging that Cefaratti and Dalma provided and refrained from providing the DFSA with information they knew to be false or misleading, which highly Disclose relevant fact that a person traded in the Dalma Unified Return Fund from April to June 2016. It was also noted that Cefaratti had failed to uphold high standards of integrity and to be open and cooperative with the DFSA.
“Mr. Cefaratti not only lied to the DFSA; He continued to lie to her throughout a lengthy investigation, and then he lied to the tribunal and unnecessarily dragged us all through a rather expensive appeals process. He could easily have “admitted” and felt remorse much sooner,” the FMT said.
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