Jefferies fund wins Singapore asset freeze against Radiant World

Jefferies Financial Group's fund has been granted a freezing injunction in Singapore against Radiant World and its founder, Pinkesh Nahar, according to sources familiar with the matter. The decision came during a closed hearing on September 10 in Singapore, following the fund's earlier worldwide freezing order secured in London's High Court.

Jefferies requested and obtained permission from the British court to enforce the freezing order by applying for similar injunctions in Singapore and Hong Kong, as reported by Bloomberg previously. The lawsuit accuses the defendants of falsifying iron ore invoices as part of a fraudulent scheme, with a claimed value exceeding US$500 million (S$632 million).

The plaintiffs include LAM Trade Finance Group II LLC, a Jefferies subsidiary, and various entities connected to Radiant World, including the main Singapore operating company, its Hong Kong holding company, Pinkesh Nahar as founder and majority shareholder, Sapphire Minmetals Corporation, and Rakesh Sethi, Sapphire's chairman and majority owner.

Jefferies and Radiant World have declined to comment, while Sethi did not immediately respond to a request for comment. In July, Bloomberg reported that several major commodity traders had severed ties with Radiant World due to concerns over the company's provision of falsified documents to banks for financing purposes. Radiant World denied any wrongdoing and stated it adheres to the highest commercial and legal standards.

Singapore police are currently investigating the company, and they conducted a raid on Radiant World's Singapore office last month, questioning several employees. Additionally, a unit of Japanese lender Mizuho Financial Group is seeking judicial management of Radiant World Corporation, a form of debt restructuring where a third party assumes control of the company.

The next hearing in this matter is set for September 23 at the Singapore court. The court listing also revealed that Intesa Sanpaolo SpA and Deutsche Bank AG have been designated as "non-parties" with their own legal representation, marking the first time these two banks have appeared in any legal action involving Radiant World.

Banks such as Intesa and Deutsche Bank have reportedly been informed by Radiant World's counterparties that certain invoices forming the basis of their exposure to the company are not genuine. Spokespeople for Intesa and Deutsche Bank declined to comment.