Jefferies Discovers Fake Invoices Used by Sapphire Minmetals Corp

Jefferies Group discovered that several invoices used to secure financing for the iron ore trader Sapphire Minmetals Corporation Limited were not genuine. The investment bank identified the fraud after verifying the documents with Vitol Group.

The discovery affects the Point Bonita Lighthouse fund, a vehicle managed by Jefferies. This fund has already faced significant scrutiny after disclosing millions of dollars in exposure to First Brands Group, a bankrupt auto-parts manufacturer.

In recent weeks, Jefferies has been reviewing documentation supporting financing for both Sapphire Minmetals and Radiant World. The incident has intensified investor concerns regarding receivables finance, a lending practice generally considered low-risk because the loans are backed by invoices.