Weavering Chief Found Liable For US$600 Million Fraud

May 30 2012 | 1:08pm ET

The head of collapsed hedge fund Weavering Capital has been found liable for the US$600 million fraud.

A London High Court judge ruled that Magnus Peterson deceived clients. "I do not accept Mr. Peterson's assertions that the investors understood his strategy very well," the judge wrote. "He cannot show any document in which he explained it."

Weavering collapsed in 2009 after an investigation found that more than 100% of its Macro fund's net assets were tied up in swaps with another Weavering entity.

Weavering's liquidators plan to seek damages of at least US$450 million against Peterson and three others, who were found to have negligently allowed the fraud to happen. The three include Peterson's wife, Amanda.

British regulators last year dropped their probe into Weavering, saying there was not a reasonable prospect of winning a criminal conviction.


In Depth

OmniQuest Capital: Why Funds of Hedge Funds Work

Aug 11 2016 | 4:47pm ET

There have been few sectors of the alternative investment universe under as much...

Lifestyle

Kiawah: Island Reversal

Aug 24 2016 | 9:59pm ET

Looking for real estate investments but the typical real estate fare isn’t cutting...

Guest Contributor

Old Hill Partners: Embrace Illiquidity

Aug 9 2016 | 2:39pm ET

The age-old financial concept that higher yields are the result of higher risk and...