German hedge fund manager Florian Homm, who had been a fugitive for more than five years, was arrested in Italy on US fraud charges, according to a statement from the US attorney’s office in Los Angeles. Homm, 53, the founder and chief investment officer of Absolute Capital Management Holdings, is accused of orchestrating a market manipulation scheme to artificially improve the performance of his funds, a fraud that led to at least $200m (£134m) in losses to investors. He was arrested Friday at the Uffizi Gallery art museum in Florence. There has been no indication from Homm as to how he will plead. Italy is now expected to extradite him to the United States.