Weavering Capital (UK) Ltd founder Magnus Peterson has been sentenced to 13 years in prison after he was found guilty of fraud by a London court this week. This marks one of the longest sentences handed down for a high-profile fraud in the UK in recent times.
Peterson perpetrated fraud
Magnus Peterson is the founder of one of London’s oldest Hedge Funds. The UK’s Serious Fraud Office (SFO) charged the founder with several criminal offenses. As reported by ValueWalk, the case against the hedge fund began in 2009, when the fund was liquidated as it failed to meet client requests for redemption of capital. Though the SFO had originally closed the investigation, the SFO eventually reopened the investigation into the hedge fund.
This week’s verdict brings to an end an almost six-year investigation by the UK’s SFO into the collapse of the $600 million hedge fund. Magnus Peterson told investors he was following a low-risk strategy. But when it resulted in losses, he tried to it cover up with worthless interest-rate swaps tied to a counter-party fund that he also controlled.
During the trial, the SFO said Peterson made 7 million pounds ($10.6 million) for himself over six years. According to the agency, the estimated loss to investors was about $530 million.
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