Saturday, 22 October 2016
Last updated 19 hours ago
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.