Glencore faces US$2 billion suit as it alleges Radiant World fraud

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomeMiningNewsGlencore faces US$2 billion suit as it alleges Radiant World fraudFor years, Glencore was Radiant World’s most important backer. However, the relationship has recently souredAuthor of the article:Last updated 36 minutes ago Glencore began to withdraw from the trading group after banks started to approach it with Radiant World invoices with its name on it, which it could not verify as genuine. Photo by FABRICE COFFRINI/AFP/Getty ImagesGlencore PLC accused Radiant World and associated companies of sending falsified invoicesto lenders — just as a senior executive at the group of traders said they had filed a US$2 billion lawsuit against Glencore.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountThe claims mark the explosive end of a business relationship that for many years was extremely close. Bloomberg News has reported previously that Glencore traded extensively with Radiant World, helping it secure financing and even acquiring warrants that gave it the option to take a minority stake in the smaller company.On Tuesday, Glencore said that it had ended all business with Radiant World and associated companies including Sapphire Minmetals, and “exited all obligations.”SUBSCRIBER EXCLUSIVE: FP West: Energy Insider brings you behind the oilpatch’s closed doors with exclusive insights from insiders every Wednesday morning.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of FP West: Energy Insider will soon be in your inbox.We encountered an issue signing you up. Please try againFor the first time, it directly accused them of fraud, saying that it had “confirmed evidence” that Radiant World and associated companies had “sent falsified invoices and contracts as well as fabricated emails, which they fraudulently claimed to have received from Glencore personnel, to a number of financial institutions.”Bloomberg News reported in July that several major commodity traders had moved to cut ties with Radiant World amid concerns it had provided falsified documents to banks. The company at the time denied wrongdoing and said it conducts its business to the highest commercial and legal standards. A spokesperson for Radiant World had no immediate comment on the Glencore statement.Radiant World and Sapphire Minmetals have previously claimed that Glencore’s withdrawal went against its contractual commitments to them and has caused them enormous losses.“We have filed in the Singapore court against Glencore for US$2 billion,” Rakesh Sethi, chairman of Sapphire Minmetals, told Bloomberg News by phone on Tuesday. He said that Radiant World and Sapphire Minmetals were joining forces for the claim, declining to give further details.It was not immediately possible to confirm that the lawsuit had been filed on the website of Singapore’s court system. A spokesperson for Radiant World declined to comment on Sethi’s statement.In its statement, Glencore said: “These claims are meritless and we will contest them vigorously. We have incurred losses and been exposed to risks by Radiant World companies and will take appropriate action.”Glencore has taken a US$480 million provision on its exposure, Bloomberg previously reported, one of its largest trading losses in its history as a public company.“We take these issues seriously and are conducting a review of our historic business activities with Radiant World, Sapphire Minmetals and associated companies,” it said.Glencore for years was Radiant World’s most important backer, Bloomberg has reported previously. A letter from Radiant World’s lawyers, previously reported by Bloomberg, cited a November 2024 WhatsApp message from Peter Hill, Glencore’s head of steelmaking raw materials, in which he said that Glencore had “basically bank rolled your entire existence for the last few years.”This advertisement has not loaded yet.This advertisement has not loaded yet, but your article continues below.However, the relationship soured this year, with Glencore beginning to withdraw after banks started to approach it with Radiant World invoices with its name on it, which it could not verify as genuine, Bloomberg reported previously.A lawsuit against Radiant World from Incomlend PTE., a Singapore invoice financing platform, alleged that Radiant World borrowed from it using Glencore documents which Glencore later said were not genuine. Meanwhile, Jefferies Financial Group Inc. has accused it of falsifying iron ore invoices as part of a “fraudulent scheme” in a claim that led a London court to impose a US$499 million worldwide freezing order against Radiant World and Sapphire Minmetals.We apologize, but this video has failed to load.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.