(Sept 11): The founder of iron ore trader Radiant World has been limited to £4,000 (US$5,400 or RM22,028) a week in living expenses under a worldwide freezing order secured by a Jefferies Financial Group Inc fund, according to court documents.

The restriction was detailed in previously unreported filings in relation to the Jefferies fund’s application for a Singapore freezing injunction against Radiant World and its founder Pinkesh Nahar earlier this week, which Bloomberg News previously reported had been granted. It referred to an earlier worldwide freezing order issued by a London court against the same defendants. 

Sapphire Minmetals Corporation Ltd, a closely related but legally separate company, and its chairman Rakesh Sethi are included in the injunction. Sethi is also subject to a £4,000-a-week living expenses limit, according to the filings.

A spokesperson for Radiant World did not immediately respond to a request for comment. Sethi also did not immediately respond to a request for comment.

LAM Trade Finance Group II LLC — a fund run by Jefferies subsidiary Point Bonita — brought the actions against Radiant World Corporation Pte Ltd, Radiant World’s main Singapore operating company; Radiant World Holding Ltd, its Hong Kong holding company; Nahar; Sapphire Minmetals; and Sethi.

In the UK lawsuit, Jefferies accused the defendants of falsifying iron ore invoices as part of a “fraudulent scheme” against it. It said its claim was worth more than US$500 million (RM2.04 billion).

Under the Singapore freezing order sought by Jefferies, the defendants would be barred from removing from Singapore, disposing of or reducing the value of assets up to a value of US$499.2 million. 

The order would cover assets held by Radiant World at KBC Bank NV, Deutsche Bank AG, China CITIC Bank International Ltd’s Singapore branch, United Overseas Bank Ltd and Mizuho Bank Ltd, as well as Nahar’s personal assets held at Nomura Singapore Ltd and Bank of Singapore Ltd. 

It would not prevent the defendants from reasonable spending on legal fees, or from dealing with or disposing of any of their assets in the ordinary course of business.

Bloomberg reported in July that several top commodity traders had stopped doing business with Radiant World amid concerns it had provided falsified documents to banks to raise financing. Radiant World denied wrongdoing and said it conducts its business to the highest commercial and legal standards. 

Singapore is a key location for Radiant World, since the group’s main operating unit is a Singapore entity. Singaporean police are investigating the company and last month raided Radiant World’s Singapore office and questioned some of the firm’s employees, Bloomberg has reported.

Uploaded by Chng Shear Lane