US Fund Accuses Trader Radiant World of Fraud in Swiss Complaint

US fund Mariner Atlantic Multi-Strategy has filed a criminal complaint in Switzerland against Radiant World and its affiliates, alleging fraud and money laundering, according to a court filing. The complaint, filed with the Geneva Public Prosecutor’s Office on September 14, expands the legal and financial troubles faced by the iron ore trader.

Mariner, managed by investment firm Mariner Investment Group, is seeking documents from the Federal Reserve Bank of New York and the Clearing House Interbank Payments System to aid in the Swiss proceedings. In the US court papers, Mariner's lawyers stated that the firm provided Radiant World with two revolving credit facilities totaling US$50 million to finance certain metals trades.

However, Mariner learned that Radiant systematically falsified commercial documents to simulate transactions and obtain financing from international lenders, including Mariner, through fictitious trades, according to the Sep 29 filing. Mariner claims it has been unable to recover the money transferred to Radiant and is now requesting wire transfer and payment message records related to Radiant group entities.

The Swiss complaint also names Sapphire Minmetals Corporation, Radiant World's local subsidiary, and founder Pinkesh Nahar. Mariner has requested a criminal investigation, searches of premises in Geneva, and the seizure of bank accounts and other assets in Switzerland. Radiant World has denied the allegations and did not provide comment immediately after the filing.