(Sept 30): A US fund has filed a criminal complaint in Switzerland accusing Radiant World and related companies of fraud and money laundering, according to a US court filing, adding a new jurisdiction to the iron ore trader’s escalating legal and financial crisis.
The complaint was described in an application filed by Mariner Atlantic Multi-Strategy LLC, which is managed by investment firm Mariner Investment Group. Mariner is seeking documents from the Federal Reserve Bank of New York and the Clearing House Interbank Payments System for use in the Swiss proceedings.
In the US court papers, lawyers for Mariner said the firm entered into agreements with Radiant World under which it provided two revolving credit facilities totalling US$50 million (RM204.08 million) to finance certain metals trades.
“However, after the funds were released, Mariner learned that Radiant systematically had falsified commercial documents in order to simulate transactions and thereby obtain financing from international lenders, including Mariner, through fictitious trades,” Mariner said in the Sept 29 filing.
Mariner said it has been unable to recover any of the money it transferred to Radiant, and is now seeking wire transfer and payment message records relating to Radiant group entities, according to the court papers.
The Swiss complaint, which was filed with the Geneva Public Prosecutor’s Office on Sept 14, also names Sapphire Minmetals Corporation SA, along with Radiant World’s local subsidiary and Radiant World founder Pinkesh Nahar. Mariner has asked prosecutors to open a criminal investigation, conduct searches of the premises in Geneva and seize bank accounts and other assets in Switzerland, according to the US filing.
A Radiant World spokesperson did not immediately respond to requests for comment. The company has denied wrongdoing. Mariner didn’t immediately respond to a request for comment in the US after business hours.
Guillaume Tattevin, Mariner’s lawyer, wasn’t immediately available to comment. Asked about the complaint, a spokesman for the Geneva prosecutor’s office declined to comment.
Radiant World is facing a spate of civil lawsuits from Singapore to London over allegations from creditors that it provided banks with falsified documents to secure financing, while Singapore Police are also conducting an investigation into the company. The company’s main offices are located in Singapore, Switzerland and Dubai.
Last week, a Singapore court appointed KPMG restructuring executives to take charge of Radiant World’s operations, granting an application by creditor Mizuho Bank Ltd, which has accused the trader of fraud.
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