Criminal charges for Nicola Horlick now?

Note:  I have edited this post.  I put a question mark in the title.  Nicola almost certainly has the reports into Madoff that her due diligence process claims she has.  In which case the due diligene was grotesquely sloppy - but at least done - and she has therefore not misled the market as to the nature of her due diligence process.

I think - for the removal of any doubt - she should release them publicly.  

If she does not have them she leaves herself vulnerable to a fraud charge.  It should be a simple thing to release them.  I urge release of these reports.  

Nicola Horlick has decided that due diligence is passé.  The website of Bramdean Asset Management used to contain the following paragraph.

Robust and thorough due diligence is at the heart of our firm's investment process. Our detailed manager monitoring programme ensures that our clients' investments are subject to on-going and effective governance.

That paragraph has now been removed as detailed here – and on Naked Shorts.

But is worse.  Bramdean Alternatives is a listed company – and its annual reports are statements to the stock exchange.

Bramdean Alternatives annual report contains the following statement about how investments are chosen.

The investment process is systematic and disciplined.  Due diligence is at its heart and around 3-4 months are typically spent analysing a potential manager, a process which includes a number of on-site visits with that manager. The process culminates in the provision of a detailed report that is then presented to and discussed at Bramdean’s Investment Committee, where a selection decision will be made on all private equity funds, specialty funds, and transitional investments. That Committee has to approve an investment unanimously before it can proceed. Where required, Bramdean will also conduct legal diligence.

Ongoing monitoring is similarly robust and includes regular reviews of market conditions and their potential effect on the underlying funds and any direct private equity investments. In response to the conclusions drawn from this process, the Investment Committee will decide whether or not to retain an investment.

Ok – it is time for Nicola to come clean.  According to Nicola 3-4 months was spent analysing the Madoff investment and a number of on-site visits were made.  There was a detailed report presented at the Investment Committee.  

Release that report now.  Go on.

Otherwise we have to conclude that such a report does not exist and Nicola is the CEO of a company making false statements.

If the UK regulators are as diligent as Nicola demands US regulators be, and that report does not exist, then it is prison time for Nicola.

But Nicola is an honourable girl.  Go on - release the report.