A fund linked to Jefferies Financial Group has filed a lawsuit in the London High Court against commodity trader Radiant World and related entities, claiming damages exceeding 500 million US dollars, or approximately 4,000 crore rupees, over alleged fraud in iron ore trade financing. Following the filing, the court granted a worldwide asset-freezing order against five named defendants to prevent any disposal or transfer of assets that could prejudice the recovery of potential court awards. The lawsuit alleges that falsified iron ore invoices, payment-related notices, commercial contracts, and email correspondence were systematically employed to induce the claimant into releasing substantial financial tranches.
Falsified Invoices and Multi-Jurisdictional Entities Named
The legal action, initiated in late August by LAM Trade Finance Group II LLC, became public on Tuesday following the disclosure of a summary of the claim. According to the court filings, the purported fraudulent scheme directed large payments to Radiant World Corporation Pte, the group’s principal operating arm based in Singapore, alongside Sapphire Minmetals Corporation Ltd, a legally distinct but closely affiliated entity. The claimant submitted that internal investigations revealed that the alleged manipulation of shipping records, invoices, and communication threads had remained concealed for a considerable period before coming to light.
The lawsuit explicitly identifies five defendants: Radiant World’s primary Singapore operating company, its Hong Kong-registered holding company, founder and majority shareholder Pinkesh Nahar, Sapphire Minmetals, and its majority owner Rakesh Sethi. Representatives for Jefferies, Radiant World, and Sethi did not immediately issue statements following the public revelation of the allegations. The litigation in the High Court remains pending, and the underlying claims have not yet been proven in legal proceedings.
Discrepancies Over Claim Size and Prior Industry Warnings
The claim of over 500 million US dollars has drawn scrutiny due to questions regarding its underlying calculation. While the court filings seek more than 4,000 crore rupees, previous documentation indicated that the fund’s direct financial exposure to Radiant World stood below 300 million US dollars, or roughly 2,400 crore rupees, with its exposure to Sapphire Minmetals being substantially lower. The marked variance between the reported actual exposure and the overall damages sought is expected to emerge as a key point of argument as the legal process moves forward.
Market concerns regarding Radiant World’s transaction records had already surfaced in July, when several leading commodity traders ceased commercial transactions with the firm amid allegations that fabricated documentation was being used to secure bank credit lines. Radiant World rejected those claims at the time, maintaining that its trading activities adhere to the highest commercial and statutory standards.
Global Asset Freeze Sought Across Multiple Financial Hubs
Alongside the worldwide freezing order secured from the London High Court, the claimant has petitioned Singapore courts for a complementary freezing order targeting Radiant World, Sapphire Minmetals, and their majority shareholders. A hearing on the Singapore injunction is set for Wednesday. Cross-border asset restraints are routinely utilized in complex financial litigation to prevent respondents from transferring liquid holdings across international boundaries before a substantive ruling is reached.
The High Court proceedings underscore the vulnerabilities facing the global trade finance architecture, where banks and non-bank lenders extend high-volume capital based on the presumed authenticity of bills of lading, corporate contracts, and invoices. Further hearings in London and Singapore are scheduled to assess the scope of the freezing measures, examine the validity of the underlying documentation, and evaluate the evidential basis for the 4,000 crore rupee recovery claim.
