Arrested Weavering Chief Hit With US$475M Claim

May 19 2009 | 2:03am ET

Being arrested is just one of several hundred million problems for Magnus Peterson.

The CEO of collapsed hedge fund Weavering Capital has had a US$475 million claim filed against him, according to a creditors’ report filed this weekend. The figure includes both the hedge fund’s losses—Weavering collapsed in March after being unable to meet more than US$100 million in redemption requests a month earlier—and performance fees paid over the years.

Weavering’s alleged victims aren’t only going after Peterson, who was released on bail on Friday after being taken in for questioning, but also his family: Wife Amanda and their five children have been listed as co-defendants in the civil suit.

Liquidator PricewaterhouseCoopers found last month that Peterson had invested a substantial amount of Weavering’s US$639 million in assets in interest-rate swaps whose counterparty was a British Virgin Islands company controlled by Peterson. The Serious Fraud Office, which arrested Peterson and another Weavering employee on Friday and searched their houses, says Weavering used those swaps to hide losses and inflate the fund’s value.

And the US$475 million may only be the beginning: According to the report, Weavering owes “non-preferential creditors £5.4 million (US$8.2 million), as well as £1.5 million (US$2.3 million) in taxes, £800,000 (US$1.2 million) to employees and £2 million (US$3 million) to other creditors.


In Depth

Q&A: Rotation Capital's Rothfleisch On SPAC 2.0

Aug 11 2017 | 7:43pm ET

Corporate actions have long been a staple of event-driven investors, but activity...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Star Mountain: Private Lending in the Lower Middle-Market

Aug 14 2017 | 4:45pm ET

Private credit has become one of the most popular alternative asset classes in recent...

 

From the current issue of