Traffigura, a commodity trader, warned Credit Suisse last year that the bank’s supply-chain finance fund contained a dubious consignment of industrialist Sanjeev Gupta’s business empire and that the three had the knowledge to negotiate.
The collapse of the b 10bn suite of Credit Suisse funds, which packaged invoices linked to a failed supply chain finance expert Greensil Capital, Has angered Swiss bank clients who have taken billions of dollars from them.
Credit Suez warns Debt 1. 1.2bn Recovering Metal Magnet Gupta, one of Grencil’s largest former clients, could be strong evidence. Greensil, once one of the UK’s most valuable financial startups, citing former Prime Minister David Cameron as an adviser, applied for the administration in March.
Trafigura raised concerns with Credit Suisse in July 2020 about being listed as a so-called receivable in an annual account of a supply chain finance fund, the report said. Acceptable indications are that Trafigura owed money to Gupta’s Liberty Commodities, its core metal business was founded about 30 years ago and is part of its GFG alliance.
Prior to its persuasion in March, Greensil would pay clients, including Liberty, and receive invoices as collateral from their suppliers or customers. The loans were then bundled into investments and sold to funds, mainly those operated by Credit Suisse.
The fund accounts in question indicate that Liberty Commodities has raised funds from Grameenil against a 30 30 million shipment to Trafigura, one of the world’s largest merchandise businesses. This means that investors in the Credit Suisse fund will have to return when Trafigura delivers the invoice.
Trafigura executives, however, told bankers at Credit Suisse that people familiar with the negotiations did not believe the shipment was genuine. The warning came as Credit Suisse was in the middle of a Internal review Of funds.
According to two people familiar with the matter, Credit Suisse executives then contacted Lex Greensil, founder of the nominating finance firm, explaining that he believed there was a misconception that the fund represented filing.
Credit Suisse, Trafigura, Greensil Capital and Gupta’s GFG Alliance all declined to comment.
The outpouring of Trafigura’s intervention comes as a result of a growing investigation into the level of credit sushi due to the appropriate diligence given to the funds. Multiple class-action lawsuits are bringing together millions of wealthy investors in litigation funds.
Bloomberg reported last week that the bank’s own commodity-trade finance division had expressed concern about Gupta after learning that the fund was investing in notes associated with his business.
Theft April report Loans were given on the basis of suspicious shipments to Liberty products from Greensil. The UK’s Serious Fraud Office announced last month that it was The investigation began Alleged fraud and money laundering allegations in the GFG, including his “money laundering” with Greensil.
The GFG has denied the wrongdoing and the SFO has promised to co-operate fully with the investigation.
In a April letter Gupta explained in the FT that Greensil allowed his business to raise funds against a “potential customer of the Liberty Commodity” because Greensil’s benefits allow for “potential” or “future” acceptance.
However, a document sent to Credit Suisse for investors’ funds in April showed that Liberty Commodities did not have a so-called “future acceptable” advantage, meaning that financing against existing invoices could be increased.
The December 2019 document shown to GFG by the Financial Times further stated that Grinzil had a regular “account acceptance” benefit from Liberty Commodities as opposed to the “future acceptance” benefits it provided to some of its industrial businesses.
The FT had earlier said that several European metal traders listed on Liberty Commodities’ shipments denied doing business with Gupta’s group. The GFG has denied the wrongdoing in response to an earlier FT report.
In contrast to these firms, Trafigura has had a multifaceted relationship in recent years with Gupta, who began his career as a commodity trader before buying metal trees.
In addition to buying metal from Gupta, he also supplied commodity trading houses Part of a m 350m loan In 2018 he is backing the purchase of a French aluminum scent.