Commodities trader Trafigura Group said it was a victim of a systematic fraud that could cost it as much as $577M.
The company said it thought it was buying containers full of nickel, but what it received did not contain the metal. Trafigura has accused the companies of metals trader Prateek Gupta of being behind the alleged fraud.
- Trafigura said it has worked with Gupta’s companies in the past without any issues; however, in 2022, some red flags began to emerge.
- The commodities trader said there was no evidence that its employees were involved in the scam, and it had been deceived by false documents.
- Trafigura said it has started legal proceedings against Gupta and his companies which include TMT Metals and subsidiaries of UD Trading Group.
- Trafigura took a $577M impairment charge in its current financial period, which represents the maximum potential loss from the fraud.
