New York.—Florian Homm, a flamboyant hedge fund manager who used to live in Majorca but was arrested in Italy this month after five years on the run, has been indicted by a federal grand jury in Los Angeles for running what prosecutors called a fraud that caused investors to lose $200 million.

Homm, 53, was charged in an indictment made public yesterday with eight counts of securities fraud, one count of wire fraud, and one count of conspiracy.

Homm, the founder of Absolute Capital Management Holdings Ltd, which claimed to oversee $2.1 billion of assets as of August 31, 2007, has been in Italian custody since his March 8 arrest at the Uffizi Gallery in Florence.

Italy is expected to extradite Homm to the United States, where the self-described “rogue financier” faces as much as 25 years in prison on each of the securities fraud and conspiracy charges, and up to 20 years on the wire fraud charge.