Serious Fraud Office to widen Weavering probe

THE Serious Fraud Office (SFO) has widened its long-running investigation into hedge fund Weavering Capital, drawing in Swedish investigators and overseas creditors, said a source familiar with the matter.

The SFO, which launched its probe last year into Weavering’s use of interest rate swaps and last May made two arrests, has met with Sweden’s economic crime unit as well as creditors in the UK and abroad, the source said.

“They’re carrying out interviews of Weavering staff, they’re liaising with the administrators of Weavering and creditors in the UK and abroad, and they’ve met the Swedish economic crime authority,” the source said.

The widening of the probe into Weavering, founded by Swedish chief executive Magnus Peterson, comes after the SFO ended investigations into hedge fund manager Dynamic Decisions, AIG Financial Products’ UK operations and US fraudster Bernard Madoff’s UK firm.