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

High Time For A Cannabis Hedge Fund?

Sep 30 2014 | 7:07am ET

Launching a hedge fund is always a gamble, but Leslie Bocskor's decision to launch...

Lifestyle

Griffin Donates $1M To Rauner's Illinois Gov. Campaign

Sep 22 2014 | 9:29am ET

Hedge fund billionaire Kenneth Griffin definitely has a dog in this fight. The Citadel...

Guest Contributor

Appraisal Ratio Key To Evaluating Hedge Funds And Other New Investments

Sep 29 2014 | 3:07pm ET

As a former finance professor Peter Hecht experiences heartburn every time he hears...

 

Videos

Editor's Note

    Must Attend Hedge Fund Charity Events For October

    Sep 30 2014 | 9:29am ET

    The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…

 

Futures Magazine

September 2014 Cover

High frequency market making

High frequency trading is not evil, it is not a conspiracy and it really is not new; it is the natural evolution of the professional trading community making markets, providing liquidity and hopefully...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.