Jefferies fund wins Singapore asset freeze against Radiant World

Jefferies Financial Group's fund has secured a freezing injunction in Singapore targeting Radiant World and its founder, Pinkesh Nahar. This decision followed a similar worldwide freezing order granted to Jefferies by the London High Court. Jefferies had previously filed a lawsuit alleging that the defendants falsified iron ore invoices to perpetrate a fraudulent scheme, seeking over US$500 million in damages.

The lawsuit included Radiant World Corporation, Radiant World's holding company in Hong Kong, its founder and majority shareholder Nahar, Sapphire Minmetals Corporation, a closely related company, and Rakesh Sethi, Sapphire's chairman and majority owner. Jefferies and Radiant World both declined to comment, while Nahar has not yet responded to requests for comment.

Recent reports suggest that several major commodity traders have severed ties with Radiant World due to concerns over the falsified documents provided to banks for financing purposes. Radiant World has denied any wrongdoing, asserting adherence to the highest commercial and legal standards. Singaporean authorities are currently investigating the company, and in August, Singapore police conducted a raid at Radiant World's office, questioning several employees.

Additionally, a unit of Japanese lender Mizuho Financial Group is seeking judicial management of Radiant World Corporation, a process involving third-party oversight of the company's affairs. This hearing is scheduled for September 23, with Intesa Sanpaolo and Deutsche Bank listed as non-parties, marking the first time these two banks have been involved in any legal action against Radiant World.