CPS announces fund manager fraud conviction

The CPS has secured conviction of three fund managers for fraud by abuse of position of trust. The 3 individuals had worked together to defraud a hedge fund and sovereign wealth fund which belonged to the people of Libya. They were involved in setting up a company which was responsible for investing the funds of the sovereign wealth fund but instead placed investments to maximise their own rewards to the fund’ detriment. The fund lost around £11.4m.

One of the individuals had set up a hedge fund operation in London through which he collected undeclared finder fees for various investments made on behalf of the Libyan wealth fund, and then the funds were laundered through shell companies set up by two of the defendants with the help of the third.