Monday, 23 January 2017
Last updated 2 days ago
Dec 14 2012 | 12:15pm ET
British authorities have leveled criminal charges against the founder of collapsed hedge fund Weavering Capital.
Magnus Peterson is accused of false accounting, fraudulent trading, abuse of position and forgery. The charges against the Swedish national come five months after the U.K. Serious Fraud Office reopened its investigation into Weavering. The regulator had closed its probe last September after two-and-a-half years, deciding it was unlikely to win a conviction.
But the SFO changed its mind this summer, after the London High Court ruled that Peterson had misled clients and fined him US$450 million.
Weavering went into administration in 2009 when it was unable to meet redemptions. At the heart of the alleged US$600 million fraud was the claim that Weavering's assets were worth more than US$530 million, when it actually owned only a single US$637 million swap agreement with a company controlled by the hedge fund itself.
Peterson and another senior Weavering employee, Edward Platt, were arrested at the time, as authorities.
In its case against Peterson, the SFO said that the fraud at Weavering spanned from 2003 until its collapse. The first hearing in the case is scheduled for Jan. 7 in London.