Commodity Trader Trafigura Faces $577 Million Loss After Uncovering Nickel Fraud
- Trader discovered nickel cargoes that didn’t contain nickel
- Nickel and cobalt head Socrates Economou is leaving company
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Commodity trader Trafigura Group is facing more than half a billion dollars in losses after discovering metal cargoes it bought didn’t contain the nickel they were supposed to.
Trafigura has spent the past two months uncovering what it believes is a systematic fraud against it. It has started legal action against Indian businessman Prateek Gupta and several companies connected to him including TMT Metals and subsidiaries of UD Trading Group, Trafigura said in a statement.