Ex-Weavering Employees Have To Pay Share Of US$450M Judgment

Feb 19 2013 | 8:58am ET

Two former employees of collapsed hedge fund Weavering Capital remain on the hook for a share of its losses after losing a court challenge.

A London court rejected the appeals of Edward Platt and Charanpreet Dabhia. Platt, a former deputy investment manager who was arrested with Weavering founder Magnus Peterson in 2011, and Dabhia, a former director, were among 10 people—including Peterson—ordered last year to pony up a combined US$450 million in a case brought by Weavering's liquidators.

The two were the only ones of the 10 to contest the lower-court ruling, but to no avail: Judge Richard McCombe found that Platt and Dabhia, "in negligently enabling this business to continue, caused the loss claimed."

For his part, Dabhia said he was a whistleblower, alerting Weavering's accountants about the fraud, and has been unjustly punished.

"I have been a victim of the whole thing as much as investors," Dahhia told Bloomberg News. "I've lost my career."

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.

The U.K. Serious Fraud Office reopened its investigation into Weavering last year, having originally closed it in September 2011 after two-and-a-half years. At the time, the office said a conviction was unlikely, but it brought criminal charges against Peterson in December.


In Depth

Q&A: Neil Azous Talks Global Macro Investing

Nov 24 2014 | 12:41pm ET

Neil Azous is the founder and managing member of Rareview Macro, an advisory firm...

Lifestyle

Cohen Buys $101 Million Sculpture

Nov 12 2014 | 9:17am ET

Steven Cohen was the sole bidder for a rare Alberto Giacometti sculpture at Sotheby...

Guest Contributor

Why The Big Money Is Going To Europe

Nov 14 2014 | 6:03am ET

Peer-to-peer lending was invented with the individual investor in mind. But despite...

 

Sponsored Content

    For Hedge Funds, Mastering Data Is Key To Success

    Nov 4 2014 | 9:45am ET

    Data management is important to every business, but for hedge funds, it is critical. FINalternatives recently asked Peter Sanchez, CEO of Northern Trust Hedge Fund Services, how fund managers can deal with the demands of managing data while at the same time remain transparent and abide by operational best practices. Read more…

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

November 2014 Cover

Building a better market

Reg NMS created a huge bifurcation in equity markets and while much of what has followed has been positive, in terms of lower fees and greater liquidity, many traders would like to see the market come...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.