UPDATE 2-Boss of UK hedge fund Weavering convicted in fraud case

lunes 19 de enero de 2015 14:33 GYT

* Magnus Peterson found guilty on eight counts

* Could be jailed for up to 10 years; sentencing on Jan. 23

* Investors lost $536 million (Adds quotes, background, detail)

By Kirstin Ridley and Nishant Kumar

LONDON, Jan 19 (Reuters) - The boss of collapsed UK hedge fund Weavering could be jailed for up to 10 years after being found guilty of fraud by a London court on Monday, giving Britain's Serious Fraud Office (SFO) one of its most senior financial scalps since the credit crunch.

Magnus Peterson, 51, was found guilty of eight counts of fraud, forgery, false accounting and fraudulent trading and was acquitted on seven other charges after a 12-week trial that delved into the complex world of hedge fund investing. The fraud cost investors $536 million.

"Whilst Mr Peterson knew full well what the true value of the fund was when it collapsed, his investors did not. To them, the extensive losses they suffered came as a complete shock," the SFO said in a statement.

Peterson has been remanded in custody and will be sentenced on Jan. 23, the SFO said.

Swedish-born Peterson, a charismatic former interest rate and foreign exchange trader, pitched his flagship fund to institutions and wealthy individuals as a low-risk investment offering stable returns.   Continuación...