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NERA Economist Provides Expert Analysis and Testimony in Weavering Capital (UK) Ltd. Case
28 June 2012
New York -- Analysis and testimony from NERA Economic Consulting Senior Vice President Dr Chudozie Okongwu was cited in the recent ruling by Justice Sonia Proudman of the London High Court of Justice - Chancery Division in favor of Weavering Capital (UK) Limited (WCUK) liquidators in the case, Weavering Capital (UK) Ltd. and Anr v. Peterson and Ors.
The civil case focused on compensation for financial losses incurred by investors in WCUK as a result of alleged fraud by former WCUK Chief Executive and Managing Director Magnus Peterson and three other directors and employees. Dr Okongwu was retained to provide expert economic analysis and testimony on behalf of WCUK's liquidators. Dr Okongwu provided evidence that was used by the Court to make a determination that the actions of Mr Peterson and his co-defendants were consistent with the allegations of fraud.
Justice Proudman praised Dr Okongwu in her decision, finding his report as "the opposite of superficial, dealing with all relevant matters in considerable detail and great clarity."
The civil case focused on interest-rate swap agreements with a reported value of more than $600 million between WCUK's Macro Fund and British Virgin Islands-based Weavering Capital Fund, a company majority owned and entirely controlled by Mr Peterson. WCUK's liquidators claimed that the interest rate swap agreements were "sham" transactions used by Mr Peterson to manipulate the Macro Fund's reported asset values and to give investors the impression that the fund was performing well.
Justice Proudman issued a judgment on behalf of the liquidators, finding Mr Peterson liable for fraud and the three other defendants liable for negligence. All four defendants were also found to be in breach of their duties to WCUK. Justice Proudman awarded damages of $450 million against the defendants.
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