LONDON, Feb 26 (Reuters) - Indian businessman Prateek Gupta was refused permission by London's High Court on Thursday to appeal against a ruling that he defrauded commodities trader Trafigura over
Gupta Denied Appeal in Trafigura Nickel Fraud Case
LONDON, Feb 26 (Reuters) - Indian businessman Prateek Gupta was refused permission by London's High Court on Thursday to appeal against a ruling that he defrauded commodities trader Trafigura over fake nickel cargoes.
Geneva-based Trafigura alleged Gupta was the mastermind of a fraudulent "Ponzi scheme" in which he and his companies agreed to provide high-quality 99.8% pure nickel but delivered low-value or even worthless materials instead.
Allegations Against Gupta
Gupta accepted he did not deliver high-grade nickel cargoes but says Trafigura staff devised the scheme, something Trafigura's former head nickel trader Sokratis Oikonomou denied.
Judge Pushpinder Saini ruled last month that Trafigura was induced to enter into contracts "by false and fraudulent representations" made by Gupta and his companies.
The judge also said Trafigura's former employees, including Oikonomou, were "wholly innocent of any wrongdoing".
Court's Decision on Appeal
Gupta sought permission to appeal that ruling and was refused, but he can still apply directly to the Court of Appeal.
Trafigura's lawyer, Nathan Pillow, said at Thursday's hearing that Trafigura was owed about $140 million in interest on top of the $500 million principal debt. A Trafigura spokesperson said Gupta owed about $700 million plus legal costs.
"Trafigura intends to take steps to enforce the judgment and pursue recovery of the sums awarded," the spokesperson said.
Legal and Financial Implications
Gupta's lawyers did not immediately respond to a request for comment.
Gupta is subject to a worldwide freezing order over his assets and agreed to limit his living expenses under that order to 5,000 pounds ($6,763.50) a month, from 20,000 pounds a month.
Last year's trial, which concluded in December, was the culmination of events that began in November 2022, when Trafigura first received complaints about cargoes it had sold.
The discovery prompted Trafigura to carry out further inspections, book a $590 million charge and then sue Gupta and his companies in February 2023 for what it then described as "systematic fraud".
($1 = 0.7393 pounds)
(Reporting by Sam TobinEditing by Emelia Sithole-Matarise and David Goodman)
