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

FINtech Focus: Fundbase Aims To Revolutionize Access To Hedge Funds

Jan 23 2015 | 11:03am ET

Global investment in financial technology—also known as fintech—is booming....

Lifestyle

Is Steven Cohen Going to Buy the Brooklyn Nets?

Jan 19 2015 | 6:49am ET

Rumors that Steve Cohen was interested in the Brooklyn Nets emerged after Scott...

Guest Contributor

Investors Benefit From Evolution Of Fund Of Hedge Funds Model

Jan 22 2015 | 12:27pm ET

The evolution of the fund of hedge funds model over the last few years represents...

 

Editor's Note