Weavering chief is charged with fraud and forgery


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.

Start your day with The Independent, sign up for daily news emails
ebooksA celebration of British elections
  • Get to the point
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Ashdown Group: Editor-in-chief - Financial Services - City, London

£60000 - £70000 per annum + benefits : Ashdown Group: A highly successful, glo...

Ashdown Group: Junior Application Support Analyst - Fluent German Speaker

£25000 - £30000 per annum + benefits: Ashdown Group: A global leader operating...

Guru Careers: Management Accountant

£27 - 35k + Bonus + Benefits: Guru Careers: A Management Accountant is needed ...

Guru Careers: Project Manager / Business Analyst

£40-50k + Benefits.: Guru Careers: A Project Manager / Business Analyst is nee...

Day In a Page

General Election 2015: Ed Miliband's unlikely journey from hapless geek to heart-throb

Miliband's unlikely journey from hapless geek to heart-throb

He was meant to be Labour's biggest handicap - but has become almost an asset
General Election 2015: A guide to the smaller parties, from the the National Health Action Party to the Church of the Militant Elvis Party

On the margins

From Militant Elvis to Women's Equality: a guide to the underdogs standing in the election
Amr Darrag: Ex-Muslim Brotherhood minister in exile still believes Egypt's military regime can be replaced with 'moderate' Islamic rule

'This is the battle of young Egypt for the future of our country'

Ex-Muslim Brotherhood minister Amr Darrag still believes the opposition can rid Egypt of its military regime and replace it with 'moderate' Islamic rule, he tells Robert Fisk
Why patients must rely less on doctors: Improving our own health is the 'blockbuster drug of the century'

Why patients must rely less on doctors

Improving our own health is the 'blockbuster drug of the century'
Sarah Lucas is the perfect artist to represent Britain at the Venice Biennale

Flesh in Venice

Sarah Lucas has filled the British pavilion at the Venice Biennale with slinky cats and casts of her female friends' private parts. It makes you proud to be a woman, says Karen Wright
11 best anti-ageing day creams

11 best anti-ageing day creams

Slow down the ageing process with one of these high-performance, hardworking anti-agers
Juventus 2 Real Madrid 1: Five things we learnt, including Iker Casillas is past it and Carlos Tevez remains effective

Juventus vs Real Madrid

Five things we learnt from the Italian's Champions League first leg win over the Spanish giants
Ashes 2015: Test series looks a lost cause for England... whoever takes over as ECB director of cricket

Ashes series looks a lost cause for England...

Whoever takes over as ECB director of cricket, says Stephen Brenkley
Fishing for votes with Nigel Farage: The Ukip leader shows how he can work an audience as he casts his line to the disaffected of Grimsby

Fishing is on Nigel Farage's mind

Ukip leader casts a line to the disaffected
Who is bombing whom in the Middle East? It's amazing they don't all hit each other

Who is bombing whom in the Middle East?

Robert Fisk untangles the countries and factions
China's influence on fashion: At the top of the game both creatively and commercially

China's influence on fashion

At the top of the game both creatively and commercially
Lord O’Donnell: Former cabinet secretary on the election and life away from the levers of power

The man known as GOD has a reputation for getting the job done

Lord O'Donnell's three principles of rule
Rainbow shades: It's all bright on the night

Rainbow shades

It's all bright on the night
'It was first time I had ever tasted chocolate. I kept a piece, and when Amsterdam was liberated, I gave it to the first Allied soldier I saw'

Bread from heaven

Dutch survivors thank RAF for World War II drop that saved millions
Britain will be 'run for the wealthy and powerful' if Tories retain power - Labour

How 'the Axe' helped Labour

UK will be 'run for the wealthy and powerful' if Tories retain power