A Jefferies trade finance fund, LAM Trade Finance Group II, has expressed significant skepticism regarding the validity of more than $1 billion in trade receivables on the books of commodity trader Radiant World. LAM claims that Radiant World, along with Hong Kong-based Sapphire Minmetals and their founders, engaged in a "very serious, very large and very complicated fraud" by falsifying invoices, emails, and other documentation to secure or maintain financing. This has led to a worldwide freezing order against the companies, initially issued on August 27 and later bolstered by a London court to require notification of payments exceeding $500,000.
LAM's lawyer, Simon Salzedo KC, stated there is "good reason to doubt" the accuracy of Radiant World's reported $1 billion in current assets, primarily trade receivables, due to increasing third-party evidence of a "very large-scale, very sophisticated, very international fraudulent conspiracy." Despite Radiant World denying the allegations and claiming monthly revenues of $400-500 million, an affidavit filed on September 9 reportedly showed the company had only $10,000 in cash, a dramatic decrease from $200 million at the end of September 2025. This significant discrepancy further fuels concerns about the company's financial health and asset disclosures.
The Jefferies fund, which is reportedly winding down, initiated legal action after Radiant World began defaulting on repayments in late 2025. Under receivables financing, lenders advance money against invoices, typically repaid directly by the buyer. However, LAM alleges it "gradually uncovered that many of the documents purportedly supporting the unpaid receivables had been falsified," including invoices and contracts. The claim further states that some payments made by Radiant World did not correspond to the specific receivables financed by LAM, and that "debit notes" were issued to direct payments to LAM for "completely different debts."
Radiant World has yet to file a defense to LAM's allegations, but in response to similar claims from Glencore, the company expressed confidence that its position would be vindicated. Previously, in late July, Radiant World dismissed claims against it as "inaccurate and unsubstantiated," asserting it operates to the "highest commercial and legal standards." However, other creditors, including Glencore and Mizuho, have joined Jefferies in accusing Radiant World of fraud, with a London court judge finding a "real risk" that Radiant World and its founder, Pinkesh Nahar, have not properly disclosed their assets.
