Trafigura has won its London High Court lawsuit against Indian businessman Prateek Gupta regarding fraudulent nickel cargoes. The court ruled in favour of the commodities trader, finding that Gupta had made “false and fraudulent representations” that induced Trafigura to enter into the contracts. Trafigura, headquartered in Geneva, is a multinational commodity trading company that specialises in the oil and metals markets. The company has been a significant player in the global commodities market for three decades.
The lawsuit stemmed from allegations that Gupta orchestrated a “Ponzi scheme,” promising high-quality 99.8% pure nickel but delivering low-value or worthless materials. Gupta admitted to not delivering the agreed-upon high-grade nickel but claimed that Trafigura staff devised the scheme, an allegation denied by Trafigura’s former head nickel trader, Sokratis Oikonomou. Judge Pushpinder Saini stated that Trafigura’s former employees, including Oikonomou, were “wholly innocent of any wrongdoing.”
A Trafigura spokesperson stated that the ruling “comprehensively finds in favour of Trafigura and recognises the systematic fraud perpetrated by Mr Gupta and the corporate defendants.” The spokesperson added that the company is continuing to pursue recovery from Gupta. Gupta’s legal representation at trial no longer represents him, and a request for comment from his former lawyer went unanswered.
The trial concluded in December, following the initial complaints in November 2022 about the cargoes. Trafigura booked a $590 million charge and initiated the lawsuit against Gupta and his companies in February 2023, alleging systematic fraud. The company argued that Gupta had a history of fraudulent dealings and diverted funds from the scheme to support his struggling businesses. The judge dismissed Gupta’s claims as an attempt to deflect from the admitted fraud.
