The UK Financial Conduct Authority (FCA) has prohibited former chief executive Paul Taylor and former managing director Esmeralda Toni of Blue Horizon Asset Management Ltd (BHAM) from working in regulated financial services, while levying combined monetary penalties following an investigation into extended dishonest conduct during separate corporate acquisition attempts.

According to the regulatory authority, Paul Taylor was fined £489,000, an amount that reflects a 30 percent discount under the settlement procedures of the regulator for agreeing to resolve the matter. Without this settlement reduction, the financial penalty imposed on Taylor would have totaled £698,600. In addition, former executive director Esmeralda Toni was fined £121,200 after also receiving a 30 percent settlement discount from an initial penalty amount of £173,100.

The regulator determined that Taylor and Toni acted dishonestly over an extended period to deceive colleagues at BHAM, transaction counterparties, and regulatory bodies. The fraudulent misconduct occurred during two separate transaction initiatives involving a UK bank and a professional sports club.

While attempting to acquire a UK banking institution, Taylor falsified or arranged for the falsification of documents to claim ownership of a bond portfolio valued at approximately €200 million. Toni knowingly assisted in the scheme by making misleading statements directly to the bank and helping create the false documentation. The watchdog noted that Taylor knew, and Toni understood it as likely, that these deceptive materials would be relied upon by both the FCA and the Prudential Regulation Authority (PRA) during the regulatory assessment of the bank buyout.

On another occasion, Taylor attempted to purchase Reading Football Club, where he repeated misleading statements claiming ownership of the same fake €200 million bond portfolio to advance the acquisition attempt. When BHAM later launched an internal investigation into the occurrences, Toni was interviewed and denied generating false documents or providing misleading statements.

The regulatory authority found that both individuals breached Individual Conduct Rule 1, which requires financial industry professionals to act with integrity. Consequently, the watchdog concluded that Taylor and Toni are not fit and proper persons, prohibiting them from performing any functions in connection with regulated financial activities.

'Trust in financial services relies on those working in it to be honest. Mr Taylor and Ms Toni fell woefully short of even this minimum expectation. They lied and lied again, first for commercial gain and then to cover their backs. They have no place in our industry.'

Official regulatory context shows that Taylor served as chief executive and executive director at BHAM from February 14, 2022, through January 17, 2025, while Toni was an executive director from February 14, 2022, to December 16, 2025. The FCA exercised its authority under section 56 to issue prohibition orders and section 66 of the Financial Services and Markets Act 2000 to apply financial penalties.