Charges against hedge fund founder

THE founder of a collapsed $600m (£370m) hedge fund has been charged with a raft of fraud offences, the Serious Fraud Office (SFO) has announced.
By The Newsroom
Published 15th Dec 2012, 06:00 BST

Magnus Peterson, the founding director of Weavering Capital, was charged with two offences of false accounting, one of fraudulent trading, one of fraud by abuse of position and two offences of forgery, all alleged to have taken place between 2003 and 2009.

Weavering was primarily an investment adviser to a Cayman Islands incorporated hedge fund, Weavering Macro Fixed Income Fund. When the fund collapsed in March 2009, investors were left with hundreds of millions of dollars of losses.

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The SFO made two arrests in May 2009 before dropping its initial investigation last September. However, in July the SFO reopened the case.

The department, which is responsible for investigating and prosecuting serious and complex fraud, previously said the investigation concerned transactions between the fund and a related Weavering company which inflated the net asset value of the fund.