Radiant World Sues Glencore for $2 Billion Amid Fraud Claims

Commodity trader Radiant World and its former unit Sapphire Minmetals have filed a lawsuit in the High Court of Singapore seeking over $2 billion in damages from Glencore. The trader alleges that Glencore committed fraud, conspiracy, and breach of contract by concealing trading arrangements from audited records and terminating their partnership after extracting $800 million in payments through promises of a long-term relationship.

Glencore has dismissed the claims as meritless and countered with accusations of fraud. The commodities giant asserts that Radiant World sent falsified invoices, contracts, and fabricated emails to financial institutions to maintain trade finance. Glencore has exited all obligations with the trader and taken a $480 million provision against its exposure.

Simultaneously, Radiant World is facing severe legal pressure from multiple lenders. Mizuho Financial Group alleged the trader fabricated emails with Glencore to avoid repaying $95.5 million, leading the Supreme Court of Singapore to order that Radiant World not dispose of company property. The company also faces a $31.7 million claim from Incomlend Pte. Ltd and a $499 million asset freeze ordered by a London court following allegations from a Jefferies-managed fund.

Radiant World denies any wrongdoing, characterizing the legal battle as a commercial dispute. The company and its founder, Pinkesh Nahar, are currently under investigation by the Singapore Police Force, the U.S. Department of Justice, and the Commodity Futures Trading Commission.