A fund overseen by Jefferies Financial Group Inc has initiated legal proceedings in a London court, alleging that Radiant World forged iron ore invoices as part of a deceptive scheme. The lawsuit, which seeks $500 million, was filed in late August and led a judge to issue a worldwide asset freeze order against Radiant World and its founder, a development that had been previously reported. However, the precise details of the accusations have only now come to light, marking one of the first instances where a major lender has publicly leveled fraud charges against the company.

According to a claim summary made public on Tuesday at the UK High Court, LAM Trade Finance Group II LLC is accusing the defendants of orchestrating a fraudulent plot that convinced the fund to disburse substantial sums to Radiant World Corporation Pte, the primary operating entity, and Sapphire Minmetals Corporation Ltd, a closely associated but legally distinct firm. The legal documents assert that the scheme involved an array of deceptive practices, including the fabrication of invoices, transfer notices, contracts, and email correspondence. The fund's investigation revealed that this fraudulent activity had been concealed for an extended period.

The fund, which is managed by Point Bonita, an arm of the US institution's asset management division, has named several parties as defendants. These include Radiant World's main Singapore-based operations, its Hong Kong holding company, founder and majority shareholder Pinkesh Nahar, along with Sapphire Minmetals and its principal shareholder Rakesh Sethi. Spokespeople for both Jefferies and Radiant World did not immediately respond to requests for comment. Sethi, who serves as chairman and largest shareholder of Sapphire, also declined to comment when reached by phone on Tuesday.