SFO urged to reopen Weavering case after Jones Day damages win

The Serious Fraud Office (SFO) has been called on to reopen a criminal investigation into the collapse of Weavering Capital, the UK’s largest hedge-fund fraud.

The liquidators of Weavering, Duff & Phelps, instructed Jones Day commercial litigation and arbitration partner Barnaby Stueck in a $500m action against the former directors. The claims included allegations of deceit and breach of fiduciary duty against founder Magnus Peterson, his wife and two associates.

Stueck instructed Blackstone Chambers’ Robert Anderson QC and Tom Richards and the High Court has just awarded creditors $450m in damages after Peterson was found liable.

Last September, the SFO dropped its two-year long investigation into the Weavering collapse (8 September 2011), but after the civil judgment, investors – including charities and pension funds – are seeking a fresh meeting with the watchdog.

The SFO said there was insufficient evidence to secure convictions against Peterson and Edward Platt, a senior employee who was arrested in 2009.

At the time Stueck said the decision would raise serious questions about the ability of British prosecutors to pursue fraud cases.

The SFO has not commented.

Last week the body was criticised for its investigation into the Tchenguiz brothers (25 May 2012).