Saturday, 2 July 2016
Last updated 5 hours ago
Jan 7 2013 | 11:02am ET
The liquidator of Weavering Capital, whose founder faces fraud charges, has sued the collapsed hedge fund's Irish administrator for as much as €500 million.
Grant Thornton alleges that BNY Mellon Investment Servicing International improperly calculated Weavering's assets under management. The hedge fund claimed to have assets worth more than US$530 million, when it allegedly owned just a single US$637 million swap agreement with a company controlled by the hedge fund itself.
"We believe the issues being heard in this case are of vital importance in establishing the responsibilities of companies offering hedge fund administration services, and ensuring Irish law appropriately protects investors in hedge funds administered in this jurisdiction," a Grant Thornton spokesman said.
Weavering's auditors, Ernst & Young, have also been sued.
BNY Mellon itself never provided services to Weavering, which collapsed in 2009. But it bought Weavering's administrator, PNC Global Investment Servicing, the following year.