British Authorities Charge Hedge Fund Founder
LONDON – The founder of Weavering Capital, one of Britain’s oldest hedge funds, has been charged with fraud, fraudulent trading and false accounting.
The Serious Fraud Office of Britain said on Friday that it had charged Magnus Peterson, 49, with six offenses connected to the collapse of Weavering Capital in 2009. Mr. Peterson will appear in court early next year.
The London-based hedge fund, which had more than $ 600 million under management, imploded after it was discovered that a multimillion-dollar trade in the firm’s flagship fund was linked to an offshore company controlled by Mr. Peterson.
British authorities had reopened the case this year soon after David Green, the Serious Fraud Office’s new director, took over in April. His predecessor, Richard Alderman, had dropped the case, citing insufficient evidence.