Weavering Founder In Court On Fraud Charges

Jan 7 2013 | 11:02am ET

The head of collapsed hedge fund Weavering Capital made his first appearance in court today to face fraud charges.

Magnus Peterson was hit with six counts of fraud, forgery, fraudulent trading and false accounting last month. The London judge ordered him to surrender his passport and scheduled a hearing at a higher criminal court in three months.

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. But the U.K. Serious Fraud Office closed its probe last September, deciding it was unlikely to win a conviction. It reopened the case last year, after the London High Court ruled that the Swedish national had misled clients and fined him US$450 million.

In Depth

Related-Company Fees: Normal Industry Practice or Conflicted Compensation?

Nov 11 2015 | 4:23pm ET

Regulatory agencies as well as investors are increasingly exploring whether certain...


Ferrari Roars in Wall Street Debut

Oct 21 2015 | 4:28pm ET

Shares of supercar maker Ferrari jumped as much as 15 percent to a high of nearly...

Guest Contributor

Private Debt - What is the Opportunity?

Nov 11 2015 | 3:28pm ET

In this contributed article, Rob Allard, founding partner of Firebreak Capital...


Editor's Note

    Oct 21 2015 | 10:41am ET

    One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…