United States Investigating French Commodities Giant Trafigura Group for Commodity Price Manipulation, Reported $577 Million Loss in February 2023 on Nickel Fraud for Containers Found with Missing Nickel
25th March 2023 | Hong Kong
United States Department of Justice is investigating Switzerland & Singapore-based French commodities giant Trafigura Group for commodity price manipulation, with the group reporting a $577 million loss earlier in February 2023 on nickel fraud for containers found with missing nickel. In 2022, ex-Trafigura trader Charlotte Bamber had admitted to charges of wire fraud & commodity price manipulation (United States Department of Justice). See below for more info.
“ United States Investigating French Commodities Giant Trafigura Group for Commodity Price Manipulation, Reported $577 Million Loss in February 2023 on Nickel Fraud for Containers Found with Missing Nickel “
Citi Ends Financing of Trafigura on 27th October 2023 Triggered Trafigura to Send Inspectors to Check Nickel Containers, Reports $577 Million Loss in February 2023 on Nickel Fraud & Won UK Judgement to Freeze $625 Million of India Counterpart Prateek Gupta & Companies
18th February 2023 – Citigroup ends financing of Switzerland & Singapore-based French commodities giant Trafigura Group on 27th October 2023 triggered Trafigura Group to send inspectors to check nickel containers and uncovered missing nickel in the containers. Trafigura Group reported a $577 million loss in February 2023 on the nickel fraud & also won a UK judgement to freeze $625 million of India counterpart Prateek Gupta & companies. In February 2023, Trafigura Group reported a $577 million provisional loss on fraud for containers found with missing nickel valued at around $577 million, and commencing legal actions against India businessman Prateek Gupta & his companies (TMT Metals and related companies to UD Trading Group). More info below.
Switzerland & Singapore-Based French Commodities Giant Trafigura Group Reports $577 Million Loss on Nickel Fraud for Containers Found with Missing Nickel, Commenced Legal Actions Against India Businessman Prateek Gupta & Companies Including TMT Metals & UD Trading Group
11th February 2023 – Switzerland & Singapore-based French commodities giant Trafigura Group has reported a $577 million provisional loss on fraud for containers found with missing nickel valued at around $577 million, and commencing legal actions against India businessman Prateek Gupta & his companies (TMT Metals and related companies to UD Trading Group). Trafigura Statement on 9th Feb 2023: “Trafigura recently discovered a systematic fraud committed by a group of companies connected to and apparently controlled by Mr Prateek Gupta including TMT Metals and companies owned by UD Trading Group. Trafigura has commenced legal proceedings against Mr Gupta and the companies involved. The fraud concerns containerised nickel in transit during 2022 and involved misrepresentation and presentation of a variety of false documentation. The fraud is isolated to one specific line of business. We have seen no evidence to suggest that anyone at Trafigura was involved or complicit in this illegal activity. A thorough review is ongoing. Since late December 2022, a small proportion of the containers purchased from these companies have been inspected as they reached their destination, and were found not to contain nickel. The majority of the shipments remain in transit awaiting further inspection. Nonetheless, the Group recorded a $577 million charge in the first half of 2023 for Trafigura Group Pte Ltd., estimated to be the maximum loss exposure related to this fraud. The Group’s net profits in the first half of its 2023 financial year are expected to exceed first half 2022 net profits, notwithstanding this impairment. The Group remains committed to building its presence in the fast-growing battery metals markets.” Trafigura is one of the world’s leading independent commodity trading and logistics houses, and has been trading with Prateek Gupta companies since 2015.
About Trafigura
Trafigura is a leading commodities group, owned by its employees and founded 30 years ago. At the heart of global supply, Trafigura connects vital resources to power and build the world. We deploy infrastructure, market expertise and worldwide logistics network to move oil and petroleum products, metals and minerals, gas and power from where they are produced to where they are needed, forming strong relationships that make supply chains more efficient, secure and sustainable. We invest in renewable energy projects and technologies to facilitate the transition to a low-carbon economy, including through joint ventures H2Energy Europe and Nala Renewables.
The Trafigura Group also comprises industrial assets and operating businesses including multi-metals producer Nyrstar, fuel storage and distribution company Puma Energy, and our Impala Terminals joint venture. The Group employs over 12,000 people and is active in 156 countries.
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