Banker on fraud charge
The charges brought by the Serious Fraud Office follow a 3½-year investigation into the investment activities of the Swedish banker Magnus Peterson on behalf of clients of the firm, Weavering Capital.
The hedge fund had appeared to be performing well until a rush of investors sought to pull out in the wake of the banking crisis at the end of 2008. By March 2009, administrators were called in and investors said they had lost more than $530 million.
In civil proceedings earlier this year 49-year-old Peterson denied wrongdoing and suggested another Weavering employee had acted fraudulently. His legal representatives could not be reached for comment.
Delivering her judgment, Mrs Justice Proudman found in favour of liquidators from Duff & Phelps, ruling certain swap trades "were indeed shams". Damages of $450 million were awarded against Peterson and three others. The claimants had alleged the swap trades were with an investment vehicle mostly owned and controlled by Peterson.
Frequently Asked Questions about this Article…
According to the article, the $580 million Mayfair hedge fund run by Weavering Capital imploded amid a flurry of fraud allegations in 2009. Administrators were called in by March 2009 after a rush of investors tried to withdraw funds in the wake of the 2008 banking crisis, and investors said they had lost more than $30 million.
The article identifies Magnus Peterson as the Swedish banker and founder of the Weavering fund. After a 3½-year investigation by the Serious Fraud Office (SFO), he was charged with six offences including false trading, false accounting and forgery.
The SFO carried out a 3½-year investigation into the investment activities of Magnus Peterson on behalf of clients of Weavering Capital, which led to the six criminal charges reported in the article.
In civil proceedings, Mrs Justice Proudman ruled in favour of liquidators from Duff & Phelps, finding that certain swap trades 'were indeed shams.' Damages of $450 million were awarded against Peterson and three others, with claimants alleging the swaps involved an investment vehicle mostly owned and controlled by Peterson.
The article reports that investors said they had lost more than $30 million when administrators were appointed to Weavering Capital in March 2009.
The swap trades at the centre of the civil claim were alleged to be shams. Claimants said the swaps were with an investment vehicle that was mostly owned and controlled by Magnus Peterson, and the court agreed those trades were 'indeed shams.'
No. The article says that in civil proceedings earlier in the year, 49‑year‑old Peterson denied wrongdoing and suggested another Weavering employee had acted fraudulently. His legal representatives could not be reached for comment.
Duff & Phelps acted as liquidators in the Weavering Capital matter. The court ruled in their favour in civil proceedings, finding certain swap trades were shams and awarding damages of $450 million against Peterson and three others.
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