Weavering Directors Hit With Huge Fine

Aug 29 2011 | 11:26am ET

A Cayman Islands court has fined two directors of collapsed hedge fund Weavering Capital US$111 million each.

The court found the two directors of the Weavering Macro Fixed Income Fund, who were not identified, guilty of willful neglect or default in the discharge of their duties, law firm Ogier Cayman said. Ogier Cayman brought the allegations against the directors on behalf of the fund's liquidators.

"The case shows that directors of Cayman Islands investment funds cannot sit idly by, leaving the management and control of the fund to its service providers," Ogier's Shaun Folpp said. "A director's duty to supervise the affairs of the company, and to exercise reasonable care, skill and diligence are non-delegable."

Weavering collapsed more than two years ago after it was unable to meet redemptions. An internal probe found that the Cayman fund's only asset was a US$637 million swap agreement with a  company that was controlled by Weavering itself. Weavering CEO Magnus Peterson and another person were arrested in the case, and Peterson was sued for US$475 million.


In Depth

Humble in Hofstra...One Debate an Election Can Make

Sep 26 2016 | 10:20am ET

Tonight's U.S. Presidential debate, infamously coined the “Humbling in Hofstra...

Lifestyle

Vortic: Reimagining the Custom Wristwatch

Sep 27 2016 | 7:24pm ET

American watch manufacturer Vortic, which started out restoring antique pocket watch...

Guest Contributor

Malik: The Ever-Changing Middle Market and The Entering Class of 2016

Sep 2 2016 | 5:01pm ET

Deal sourcing and origination is only going to get more competitive given current...