Founder of 370m collapsed hedge fund charged with raft of fraud charges
18:12 GMT, 14 December 2012
The founder of a hedge fund, which left investors millions of dollars out of pocket when it collapsed, has been charged with a host of fraud offences.
Magnus Peterson, the founding director of $600million (370 million) hedge fund Weavering Capital, was charged with two offences of false accounting, one offence of fraudulent trading, one offence of fraud by abuse of position and two offences of forgery.
The alleged offences took place on various dates during 2003 to 2009, the Serious Fraud Office (SFO) said today.
The Serious Fraud Office made two arrests in May 2009, but then dropped its initial investigation last September, before re-opepening the probe in July
Weavering was primarily an investment adviser to a Cayman Islands incorporated hedge fund, Weavering Macro Fixed Income Fund.
Investors were left with hundreds of millions of dollars of losses when the Macro fund collapsed in March 2009.
The SFO made two arrests in May 2009, but then dropped its initial two-and-a-half-year investigation last September.
However, in July the SFO reopened the case. Criminal proceedings were issued against the 49-year-old Swedish national of Otham, Kent on December 11.
The first hearing in his case will take place at Westminster Magistrates' Court on January 7.
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.
The reopening of the case was seen as a statement of intent by David Green, the SFO's new director.
Mr Green took over the department in April and has announced a number of new investigations into potential fraud.