Weavering chief is charged with fraud and forgery
Saturday 15 December 2012
The man behind failed hedge fund Weavering Capital has been charged with fraud, forgery and false accounting in the lead-up to the company's collapse in 2009.
Magnus Peterson, a 49-year-old Swedish national, will appear before Westminster magistrates' court on 7 January in the latest twist of a long-running scandal, which resulted in heavy losses for investors such as charities and pension funds during the financial crisis.
Weavering Capital collapsed after it became clear that the hedge fund's main assets were over $600m (£372m) in interest-rate swaps with an offshore company controlled by Mr Peterson.
At the time, investors queued up to withdraw their money from the company but their redemptions could not be funded.
The SFO dropped its initial investigation into Weavering's collapse last year due to insufficient evidence but was threatened with a judicial review by the hedge fund's creditors if it did not re-examine the file.
In July, it eventually bowed to external pressure and re-opened the case after the High Court ordered directors at the company to pay $450m in damages.
During the civil hearing in London, Mrs Justice Proudman ruled that Mr Peterson, who represented himself throughout the case, may have committed the fraud "out of a sense of invincibility, self-belief, and a gambler's mentality".
Three other directors at the firm – Edward Platt, Charanpreet Dabhia and Mr Peterson's wife Amanda – were found guilty of negligently permitting fraud to happen.
The three, with Mr Peterson, were found jointly and severally liable.
David Green, the SFO's new director, was lauded for performing a U-turn and re-opening the Weavering investigation.
Mr Green has also bared his teeth against Britain's banks over the Libor rigging scandal.
Earlier this week, the SFO along with City of London police carried out searches at two homes in Essex and one in Surrey. Three British men, aged 33, 41 and 47, were arrested and taken to the City of London police station for questioning in connection with the ongoing investigation into Libor manipulation.
The SFO has devoted at least 40 staff to the investigation over the past few months.
- 1 Australia to impose 24-hour curfew on all cats to protect endangered species
- 2 Model's video shoot on the beach interrupted by sudden landing of a group of illegal migrants
- 3 The difference between a psychopath and a sociopath
- 4 MH370: Boeing 777 wing that could match missing plane found on the French island of Reunion
Kate Winslet thanked 'particularly horrible' girl who bullied her at school after Titanic success
Israel accused of killing 75 children during day of 'carnage' and war crimes in Gaza war
Australia to impose 24-hour curfew on all cats to protect endangered species
Walter Palmer: Cecil the lion killer revealed to be American dentist
MH370: Boeing 777 wing that could match missing plane found on the French island of Reunion
Yvette Cooper: Our choice is years of Tory rule under Jeremy Corbyn – or a return to a Labour government
Labour leadership contender Jeremy Corbyn says 'we can learn a great deal from Karl Marx'
I am the Jeremy Corbyn supporter that many will tell you doesn't exist
Public anger after French sunbather beaten up by gang for wearing a bikini in Reims park
Labour leadership: New poll shows party is now even 'less electable' than under Ed Miliband
Labour leadership contest: I would never quit the party, says Liz Kendall
iJobs Money & Business
£20000 - £25000 per annum + competitive: SThree: SThree are a global FTSE 250...
£45 - £55k DOE: Guru Careers: A Financial Controller is required to join a suc...
£12500 - £20000 per annum: Recruitment Genius: Scotland's leading life insuran...
£22500 - £24500 per annum: Recruitment Genius: Inbound and outbound calls with...