Monticello boss in ramping probe

THE former boss of Monticello - a dotcom star that fell to earth - is under investigation by the Department of Trade & Industry in connection with allegations of share ramping during the tech bubble. Internet entrepreneur Mark O'Hanlon is being probed under Section 47 of the Financial Services Act 1986, after Monticello went from boom to bust.

The company was set up in 1996 to commercialise a new technology for extracting zinc. During the dotcom boom, however, it turned itself into an 'internet incubator', offering free accommodation to start-ups in exchange for a 15% stake. It floated on Ofex at about 4p and at one point soared to more than 200p.

The DTI probe began in September 2000 and was sent for further investigation last autumn. It is believed to centre on remarks by O'Hanlon in an interview with a website in early 2000. According to specialist publication Unquoted Magazine, he made a number of statements.

The shares shot up after he told the now defunct UK-Invest news channel that Monticello was moving to the Alternative Investment Market and that the shares should be trading at £5-£7. He also said the number of companies Monticello invested in could rise from nine to between 40 and 50, and that it might 'easily' make profits between £20m and £30m.

Monticello was forced to retract the statements. O'Hanlon admitted at that year's shareholder meeting that he had been 'a complete prat'. The company lost £425,000 for the year to March 2000, the latest accounts available. It was dumped from Ofex the following October.

Former Monticello non-executive director Brian Sturgess said: 'I haven't seen him for ages. I don't know where he is.' The DTI does not comment on investigations.