LONDON, June 16 (Reuters) – Hyphen Buying and selling Ltd, owned by property and metals tycoons the Reuben brothers, has filed a authorized declare towards commodity dealer Trafigura which a supply near the scenario mentioned was linked to an ongoing alleged nickel fraud case.
Trafigura booked a $590 million impairment earlier this month regarding what it alleges was “systematic fraud” by Indian businessman Prateek Gupta concerning nickel cargoes. Gupta’s representatives have beforehand mentioned they would offer a sturdy response to the allegations.
Britain’s courtroom web site confirmed that London-based Hyphen Buying and selling filed a declare with HM Courts & Tribunals on June 5 towards Trafigura. No paperwork concerning that case have been instantly out there and no particulars have been revealed as to the substance of the declare.
Nonetheless, a supply with direct data of the matter mentioned the declare was linked to the broader nickel fraud alleged by Trafigura, which earlier this yr introduced a case towards Gupta in London’s Excessive Court docket.
That may counsel that the impression of the alleged fraud is widening to different metals gamers.
Trafigura declined to remark. Neither Hyphen Buying and selling nor its proprietor Reuben Brothers responded to requests to remark.
Geneva-based Trafigura has mentioned it started to suspect in October final yr that round 25,000 tonnes of metallic bought by Gupta’s corporations will not be high-grade nickel, and commenced inspecting greater than 1,000 delivery containers.
Trafigura mentioned it ended up inspecting 156 out of 1,104 containers by the point it filed courtroom papers in February for a worldwide freezing order on Gupta and his corporations. Not one of the containers had contained nickel.
The commodity dealer has mentioned in courtroom paperwork that it bought a small variety of the cargoes to 3rd events, together with to U.S. firm Argentem Commerce Providers.
Trafigura acquired among the funds for metals bought by Argentem by way of Hyphen Buying and selling, the paperwork mentioned.
On its web site, Hyphen mentioned it specialises in metals and might present finance to “small to mid-size merchants who face difficulties accessing finance from the big commerce finance banks”.
Hyphen mentioned on LinkedIn that it’s a part of the Reuben Brothers Group, and in line with UK Corporations Home information Hyphen Buying and selling is an entirely owned subsidiary of RB Worldwide UK.
Reporting by Eric Onstad; Enhancing by Jan Harvey
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