Radiant World facing UK lawsuit from Jefferies-run fund
It is the first legal filing in UK courts over fallout from concerns the company provided falsified documents
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COMMODITIES trader Radiant World and its founder are facing a UK lawsuit from a fund linked to Jefferies Group.
LAM Trade Finance Group II filed applications in London’s High Court, including one seeking an injunction, that could lead to a full lawsuit against Radiant World and Sapphire Minmetals Corporation, court records showed.
Bloomberg reported in late July that several major commodity traders had moved to cut ties with Radiant World amid concerns it provided falsified documents to secure financing.
Some banks have frozen its accounts or suspended credit lines, while major miners, Chinese buyers and rival trading houses have withdrawn their business.
It is the first legal filing in UK courts over the fallout. There are no publicly available details of the applications filed last week and made public on Wednesday (Sep 2).
Radiant World, which became one of the leading players in iron ore trading in recent years, is facing probes in the US and Singapore while Mizuho Bank has also started legal action against Radiant World at Singapore’s High Court.
Radiant World has not been accused of wrongdoing and investigations do not always lead to charges.
LAM Trade also named Radiant’s founder, Pinkesh Nahar, and Sapphire’s majority shareholder and chairman, Rakesh Sethi, in the pre-action applications. Sapphire was once part of Radiant World.
Neither Radiant World nor a spokesperson for Jefferies responded immediately to requests for comment.
Sethi also did not immediately reply to an e-mail seeking comment. BLOOMBERG
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