Tags: hedge fund | fraud | prosecutors | UK

Hedge Fund Founder Says UK Fraud Prosecutors Acted Unfairly

Friday, 08 Nov 2013 12:25 PM

Magnus Peterson, the founder of the collapsed hedge fund Weavering Capital (UK) Ltd., is seeking to delay a criminal prosecution against him by arguing that U.K. prosecutors acted unfairly in the case.

A decision by the director of the Serious Fraud Office to reopen a probe into the firm’s collapse after the former director closed the investigation is an “abuse of process” by the agency, Peterson’s lawyer, Peter Lodder, said at a hearing in London. The court agreed to hear his arguments in February.

Peterson will also argue that the SFO’s initial decision to open the probe could be unlawful. The agency was challenged in court in September over claims its former director, Richard Alderman, improperly delegated decisions to non-lawyer executives. The court ruled the SFO had acted legally.

Weavering Capital, which once had about $640 million under management, collapsed in March 2009 after discovering the counterparty for its biggest trading position was controlled by the fund’s manager. About 10 employees, including Peterson, were ordered by a U.K. court last year to repay a total of $450 million to liquidators of the collapsed hedge fund.

Peterson was charged in December with six counts of fraud, forgery, fraudulent trading and false accounting. A trial is scheduled for October next year.

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Magnus Peterson, the founder of the collapsed hedge fund Weavering Capital (UK) Ltd., is seeking to delay a criminal prosecution against him by arguing that U.K. prosecutors acted unfairly in the case.
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2013-25-08
Friday, 08 Nov 2013 12:25 PM
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