Funds marketed in Hong Kong linked to Belvedere fraud probe
Questions are mounting over several funds promoted in Hong Kong that are now dogged by fraud allegations, director resignations and the arrest of 13 traders at a London-based foreign exchange brokerage.
Questions are mounting over several funds promoted in Hong Kong that are now dogged by fraud allegations, director resignations and the arrest of 13 traders at a London-based foreign exchange brokerage.
The US$130 million Kijani Commodities Fund and the Capital World Markets (CWM) Brighton funds are both linked to Mauritius-based Belvedere Management Group, an offshore financial services firm under investigation by regulatory authorities in Mauritius and Guernsey.
Trading in the Kijani fund, which returned 21 per cent last year, halted late last month after an exposé by David Marchant, an investigative journalist and editor of the Offshore Alert website, questioned the fund's stellar returns.
"The allegations are being strongly contested," Kijani directors said in a statement to investors.
Kijani and the CWM Brighton funds were marketed in Hong Kong, according to investment advisers and promotional literature and emails seen by the .
Kijani recently replaced two directors who resigned in the wake of Marchant's allegations, its board announced.
Emails and phone calls to Belvedere's office were not returned. Calls to CWM's London office were not returned.
