Thursday, 5 March 2015
Last updated 33 min ago
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.
Jan 23 2015 | 1:00pm ET
In our new section, FINtech Focus, we will profile one of these firms each week. While fintech is a broad category, we will be focusing on firms that specifically cater to the alternative investment industry. Read more…