Montreal-based investment manager Hans Black was found to have misappropriated $5 million from one of his Swiss clients' investments. (CBC)High-profile Montreal-based investment manager Hans Black is at the centre of a criminal investigation in Bermuda.

Black is the president of Montreal-based Interinvest Global Asset Management, a company reportedly managing some $2 billion in assets, primarily for overseas clients.

In June, a Bermuda court found Black — who is regularly quoted by financial magazine Barron's and the Financial Times, and is a frequent guest on PBS's Nightly Business Report — had misappropriated $5 million from one of his Swiss clients' investments.

In 2008, Regula Dobie, launched a lawsuit in an attempt to recover $6 million she said she had invested with Black. The money was to have been placed in an investment fund in Bermuda.

The Supreme Court of Bermuda (Commercial Court) determined Black invested $5 million in a firm called Wi2Wi, without Dobie's permission. It turns out Black is chairman of the Wi2Wi board of directors.

"In his judgment, the judge was also very scathing of … Black personally," said independent investment journalist David Marchant, who has followed the case.

"He made it clear, the judge, that he didn't believe the explanations put forward by Dr. Black about why [the money] wasn't sent back to the client."

Following the ruling, Dobie made a complaint to Bermuda Police, who launched an investigation.

"An investigation was conducted, and as a result of the investigation a file has been presented to the Bermuda Director of Public Prosecutions," said Det. David Geraghty of the Bermuda Police financial crimes unit. "It is that department that makes the ultimate decision whether or not to prosecute somebody."

The investigation so far has not resulted in criminal charges.Montreal-based Interinvest Global Asset Management reportedly manages some $2 billion in assets. (CBC)

Black is also facing a lawsuit in Quebec Superior Court laid by another Swiss citizen, Rolf Herzog. He claims Black has not returned his $2-million investment.

In 2008, Quebec's financial securities regulator, the Autorité des marchés financiers, found Black guilty of not reporting that he was at the centre of three lawsuits worth close to $10 million. He was fined $26,000.

Black, who serves on the boards of the Montreal Cardiac Institute and the Montreal Symphony Orchestra, declined to comment.