Weavering's Peterson jailed for $500m swaps fraud

Due diligence should have raised investors’ suspicions

Magnus Peterson sentenced to 13 years for $500m Weavering fraud

Magnus Peterson, the manager of Weavering Macro Fixed Income Fund, has been sentenced to 13 years in prison after losing investors $537 million in a fraud case reported to be among the biggest in aftermath of the financial crisis.

The UK-resident Swedish fund manager was convicted of eight counts of fraudulent trading, forgery, false accounting and deception on 19 January. Questions will be inevitably raised as to what regulators can do to reduce the chances of such a deception happening again.