Key facts
- A US judge authorized Mariner Atlantic Multi-Strategy LLC to subpoena payment records from the Federal Reserve Bank of New York and CHIPS.
- The subpoenas are for records related to specific accounts and a specific timeframe.
- Mariner Atlantic Multi-Strategy LLC filed a criminal complaint in Switzerland against Radiant World, alleging fraud and money laundering.
- Radiant World has previously denied any wrongdoing.
- Mariner stated it lent Radiant World about $48.6 million to finance metals trading.
- Mariner alleges Radiant World falsified commercial documents to obtain financing through fictitious trades.
A US judge has authorized an investment fund to subpoena payment records from the Federal Reserve Bank of New York and the Clearing House Interbank Payments System (CHIPS) as part of a criminal complaint filed in Switzerland against iron ore trader Radiant World. US District Judge John Cronan in Manhattan stated that the requested subpoenas were not unduly intrusive or burdensome, as they sought easily collectable payment records related to specific accounts and a defined timeframe. He also noted that obtaining these records through other means was not possible for Mariner Atlantic Multi-Strategy LLC, the fund that filed the complaint, and that Swiss courts were receptive to US assistance.
Mariner Atlantic Multi-Strategy LLC filed the criminal complaint in Switzerland on or around September 14, alleging fraud and money laundering against Radiant World, related companies, and its founder Pinkesh Nahar. The fund stated it lent Radiant World approximately $48.6 million in late June to finance metals trading, backed by trade receivables. However, Mariner claims that after the funds were released to an account in the UAE, Radiant World systematically falsified commercial documents to simulate transactions and obtain financing through fictitious trades. Mariner has been unable to recover any of the funds.
Radiant World has previously denied any wrongdoing, calling other claims inaccurate and unsubstantiated. The company has faced increasing challenges as banks and counterparties distanced themselves due to concerns over the validity of invoices submitted for financing. In addition to the Swiss complaint, Radiant World is facing civil lawsuits in London and Singapore. A Singapore court recently appointed KPMG as interim judicial manager for Radiant World's operating entity in Singapore, following an application by creditor Mizuho Bank. Singapore's police force also confirmed in August that it was investigating the company.