Radiant World, an iron ore trading company, has been accused by multiple lenders of using fraudulent invoices and contracts to obtain significant credit. Incomlend Pte., an invoice financing platform, filed a lawsuit in Singapore's High Court alleging that Radiant World used fake Glencore invoices that had already been paid, supported by fabricated contracts, to raise $31.7 million. This marks the first detailed public accusation of fraud from a lender against Radiant World, although Bloomberg had previously reported in July that major commodity firms were cutting ties due to concerns about falsified documents.
Separately, a fund managed by Jefferies Financial Group Inc. filed a $500 million lawsuit in a London court, accusing Radiant World of a "fraudulent scheme" involving falsified iron ore invoices. This led to a worldwide freezing order against Radiant World and its founder. Additionally, Mizuho Bank extended $100 million in credit to Radiant World in June, secured by invoices that a counterparty later claimed were invalid.
Glencore, a major commodity firm, has also been implicated, taking a $480 million provision on its exposure to Radiant World. This provision effectively covers Glencore's entire outstanding net exposure to the iron ore trader. The widespread allegations suggest a pattern of deceptive practices by Radiant World to secure financing.
