Reuters reports that the manager of Weavering Macro fund, the hedge fund whose credit crisis collapse left investors with hundreds of millions of dollars of losses, lied to clients and massively wrote up the value of assets, a court heard.
The liquidators of Weavering's UK operation began a civil case in London's High Court last month for fraud and breach of duty against Magnus Peterson, Weavering's chief executive and manager of its Macro fund, and other employees. The case centers on more than $600 million of interest rate swap agreements between the Macro fund and a British Virgin Islands company called Weavering Capital Fund (WCF), which was related to Weavering. Liquidators say WCF was controlled by Peterson and used to hide hundreds of millions of dollars in trading losses from investors -- a claim that Peterson denies, saying that the swaps were part of a hedging strategy.
Read more at http://www.reuters.com/article/2011/11/01/weavering-idUSL5E7M13RI20111101
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