Jefferies-run fund alleges ‘industrial-scale’ fraud in nearly US$900 million of Radiant World deals
The fund is one of several lenders suing iron ore trader Radiant World for alleged fraud
A Jefferies-run fund has alleged in court proceedings that iron ore traders Radiant World and Sapphire Minmetals engaged in "industrial-scale" fraud in receivables-financing deals totaling nearly US$900 million. This claim expands on previous reports suggesting the fraud could be one of the largest in the commodities industry since the Enron scandal.
The US$900 million figure, in addition to about US$500 million in separate legal proceedings against Radiant World, highlights the severity of the alleged wrongdoing. Radiant World and Sapphire Minmetals are part of a closely connected group of companies that deny any wrongdoing. The fund, a unit of Jefferies' Point Bonita Capital, has been granted a US$499 million freezing order against their global assets by a London court.
Point Bonita's LAM Trade Finance Group II LLC fund is owed over US$610 million in financing deals with Radiant World and Sapphire Minmetals, with most of this amount linked to receivables for sales to Glencore and Vitol Group. Both companies have provided evidence that documents related to these sales were falsified and stated they have no outstanding obligations to the fund.
In total, the fund has evidence of Radiant World and Sapphire Minmetals falsifying documents for at least 50 receivables, with a nominal value of nearly US$900 million. The fund had decided to wind down its exposure to both firms after they started missing repayment deadlines in early 2026, but the defendants have not yet filed their defenses.
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