Sunday, 1 February 2015
Last updated 2 days ago
Sep 23 2010 | 12:26pm ET
British investigators have expanded their probe into collapsed hedge fund Weavering Capital, which has already yield a pair of arrests.
The U.K. Serious Fraud Office is interviewing the London-based hedge fund’s staff and is in touch with the firm’s administrators and creditors, Reuters reports. The SFO has also met with the Swedish economic crime authority—Weavering founder Magnus Peterson, one of the two men arrested in May, is Swedish.
The investigation is reportedly zeroing in on a questionable interest rate swap that may have been used to hide losses at the hedge fund, which collapsed in March after being unable to meet more than US$100 million in redemption requests. Court-appointed liquidator PricewaterhouseCoopers said last year that a substantial amount of Weavering’s US$693 million in swaps had as a counterparty a British Virgin Islands company controlled by Peterson.
No charges have been brought against either Peterson or the other man arrested last May.
Peterson has also been sued by the fund’s creditors, who are seeking US$475 million.
Jan 23 2015 | 1:00pm ET
In our new section, FINtech Focus, we will profile one of these firms each week. While fintech is a broad category, we will be focusing on firms that specifically cater to the alternative investment industry. Read more…