New York (HedgeCo.net) – After a long and drawn out trial regarding the collapse of the UK’s largest Hedge fund, Magnus Peterson the boss of the Mayfair-based Hedge Fund has been found guilty of fraud and breach of duty and care towards investors.
Among the charges were that the fund manager “deceived clients with a strategy that could not cope with the vagaries of markets at the height of the global credit crisis.”
Peterson has consistently maintained his innocence and denied lying to investors. In the judgement Justice Proudman ruled “I do not accept Mr Peterson’s assertions that the investors understood his strategy very well. He cannot show any document in which he explained it. In all the circumstances it is my view that these swaps were never intended to be enforceable instruments.”
Other directors at the firm were found guilty of negligently permitting fraud to happen.
Estimations of the damages are currently at 450 million. Peterson and the three other directors Edward Platt, Chas Dabhia and Amanda Peterson are jointly liable.
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