Jefferies Fund Alleges Radiant World Used Fake Invoices In $500M Trade Finance Scheme

A fund managed by Jefferies Financial Group has accused troubled iron ore trader Radiant World of using falsified invoices in an alleged fraudulent scheme that has triggered a $500 million legal claim in London.

LAM Trade Finance Group II, in which Jefferies holds a minority stake, filed the claim at the London High Court in late August. The action resulted in a worldwide freezing order against Radiant World, its founder Pinkesh Nahar, and related parties.

According to the claim, the fund had financed the purchase of iron ore receivables linked to Radiant World and Sapphire Minmetals. Payments on those receivables began falling behind in late 2025 before some went unpaid in early 2026.

The fund alleges that the receivables assigned to it either did not exist or were not validly assigned, forming part of what it describes as a fraudulent scheme. Radiant World has denied wrongdoing.

The case has widened concerns across the commodity finance sector, where banks and private credit funds routinely rely on invoices, contracts and receivables as the basis for extending large financing facilities.

Jefferies’ action follows similar legal disputes involving Radiant World. Mizuho Bank has taken legal action in Singapore, while trade finance firm Incomlend is pursuing a separate $34 million claim. Singapore police have also said they are investigating the company after receiving reports.

The compliance implications are substantial. The allegations expose the risks lenders face when trade documents are accepted without sufficiently independent verification of the underlying transaction, counterparty and movement of goods.

For commodity financiers, the case puts renewed focus on invoice authentication, collateral verification, counterparty due diligence, related-party exposure and real-time confirmation of underlying trades.

The allegations remain contested and have not been proven in court.