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: Reg A+ Will Transform the Alternative Asset Landscape

Jul 7 2015 | 4:03pm ET

In addition to easing capital formation for small companies, Regulation A+ has enormous...

Lifestyle

Fiat Chrysler Files Paperwork For Ferrari IPO

Jul 23 2015 | 5:05pm ET

Italian sportscar maker Ferrari has taken a step closer to a stock market listing...

Guest Contributor

Lifting of Foreign Ownership Limits Signals Sea Change in Vietnam's Capital Markets

Jul 28 2015 | 3:01pm ET

The lifting of restrictions on foreign ownership limits in Vietnam later this year...

 

Editor's Note