Jefferies fund alleges US$900 million fraud in Radiant World deals
What's new: A London court froze US$499 million in global assets tied to Radiant World, Sapphire Minmetals and their majority owners.
A Jefferies-run fund alleged in London court filings that iron ore traders Radiant World and Sapphire Minmetals fabricated documents in receivables-financing deals worth nearly US$900 million. The claim broadens the scale of an alleged fraud already facing separate lawsuits from other lenders and creditors over about US$500 million in invoices. Point Bonita Capital’s LAM Trade Finance Group II fund said it is owed more than US$610 million, including over US$550 million tied to purported sales to Glencore and Vitol. The court granted a US$499 million freezing order over global assets of Radiant, Sapphire and majority owners Pinkesh Nahar and Rakesh Sethi. The companies have repeatedly denied wrongdoing.