Banker on fraud charge
The charges brought by the Serious Fraud Office follow a three-and-a-half-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…
Weavering Capital, a Mayfair hedge fund firm with about $580 million under management, imploded amid fraud allegations in 2009. The fund had appeared to be performing well until a wave of investor withdrawals at the end of 2008. By March 2009 administrators were called in and investors said they had lost more than $30 million.
Swedish banker Magnus Peterson, the founder of the firm, has been charged with six offences by the Serious Fraud Office, including false trading, false accounting and forgery. The charges follow a three-and-a-half-year investigation into his investment activities on behalf of Weavering Capital clients.
The Serious Fraud Office brought the criminal charges against Magnus Peterson after conducting a three-and-a-half-year investigation into the investment activities connected to Weavering Capital clients.
Yes. In civil proceedings earlier in the year, Mrs Justice Proudman found in favour of liquidators from Duff & Phelps and ruled that certain swap trades 'were indeed shams.' Damages of $450 million were awarded against Magnus Peterson and three others.
No. In the civil proceedings Magnus Peterson, aged 49 at the time, denied wrongdoing and suggested another Weavering employee had acted fraudulently. His legal representatives could not be reached for comment, according to the article.
The article reports that certain swap trades used by Weavering Capital were found by the court to be 'shams.' The liquidators argued those trades were with an investment vehicle mostly owned and controlled by Magnus Peterson, which led to a substantial damages award in the civil case.
According to the article, the hedge fund had appeared to be performing well until the banking crisis at the end of 2008 prompted a rush of investors seeking to withdraw their money. That wave of redemptions contributed to the fund’s collapse and the appointment of administrators in March 2009.
Liquidators from Duff & Phelps were involved in the civil proceedings and won a judgment finding certain trades were shams. The Serious Fraud Office brought the criminal charges against Magnus Peterson following its investigation.
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