Radiant World Faces Swiss Money Laundering Complaint Over Alleged Fictitious Metals Trades

New York-based investment fund Mariner Atlantic Multi-Strategy has filed a criminal complaint in Switzerland against iron ore trader Radiant World and related entities, alleging fraud and money laundering in connection with financing obtained for metals transactions.

The complaint was filed with the Geneva Public Prosecutor’s Office on or around September 14 and names Radiant World, its Swiss subsidiary, Sapphire Minmetals Corporation and founder Pinkesh Nahar.

Mariner is seeking a criminal investigation in Switzerland, searches of premises in Geneva and the seizure of bank accounts and other assets.

The allegations relate to approximately $48.6 million that Mariner says it provided to Radiant World in late June through revolving credit facilities to finance metals trading. The financing was secured against trade receivables.

According to court filings in the U.S. District Court for the Southern District of New York, Mariner alleges that after the funds were released to an account in the United Arab Emirates, it discovered that commercial documents had allegedly been falsified to simulate transactions and obtain financing from international lenders through fictitious trades.

Mariner says it has been unable to recover the funds.

The fund has separately sought access to payment records held by the Federal Reserve Bank of New York and the Clearing House Interbank Payments System (CHIPS). On October 6, U.S. District Judge John Cronan authorised Mariner to seek the records, finding that the requested information concerned specific accounts and time periods and was not unduly burdensome.

The records are intended to support Mariner’s proceedings in Switzerland and relate to transfers involving Radiant World group entities.

Radiant World has denied wrongdoing and has previously described allegations against the company as inaccurate and unsubstantiated, stating that it conducts its business to commercial and legal standards. Nahar and a Radiant World representative did not respond to requests for comment on the Swiss complaint.

The Geneva Public Prosecutor’s Office has not confirmed whether it has received the complaint.

The Swiss proceedings form part of a broader series of legal and regulatory actions involving Radiant World. Creditors have initiated proceedings in Singapore and London over allegations concerning documents used to obtain financing.

In Singapore, a court recently appointed KPMG as interim judicial managers of Radiant World’s operating entity following an application by Mizuho Bank. Singapore police have also confirmed that they are investigating the company, although they have not disclosed details of the investigation.

Radiant World is headquartered in Singapore and has operations and offices across several jurisdictions, including Switzerland and the United Arab Emirates.

The allegations made by Mariner have not been established in court, and no criminal charges or findings of money laundering have been reported against Radiant World or its executives in Switzerland.

By fLEXI tEAM