Trafigura Secures Legal Win Against Prateek Gupta
After a lengthy series of legal disputes, Trafigura has achieved a significant legal victory. A judge held businessman Prateek Gupta accountable for a fraudulent nickel cargo scheme, ordering the Swiss trading firm to receive $500 million in damages.
The judgment from the London High Court stated, “Trafigura was the victim of a massive fraud devised and perpetrated by Prateek Gupta using the defendant companies.” It further explained that Gupta, along with the companies he controlled, had deceived Trafigura out of roughly $500 million by falsely representing that they were selling LME-grade nickel, while actually supplying low-grade or worthless material.
This decision, arriving after a trial last year, marks the end of a protracted legal battle that began in 2023 when Trafigura filed a lawsuit against its former partner Gupta over fake nickel shipments.
Judge Saini ruled in favor of Trafigura, granting immunity to two employees, Harshdeep Bhatia and Sokratis Oikonomo, who had been implicated in the fraud. The judge noted, “It is important to record that Mr. Harshdeep Bhatia and Mr. Sokratis Oikonomou (both formerly of Trafigura) are completely innocent of any wrongdoing.”
The judgment indicates that Trafigura is entitled to relief of around $500 million, along with considerable damages, though the precise amount will be confirmed in a public hearing later on.
In a statement, Trafigura expressed approval of the ruling, emphasizing that it thoroughly vindicates them and exposes Gupta’s systematic fraud.
Interestingly, Gupta’s legal team resigned just before the verdict was announced, and he has not commented on the matter. He retains the option to appeal this ruling.
During the trial, Gupta alleged that Trafigura staff had colluded in the nickel operation, but the judge dismissed this claim as implausible.
Trafigura uncovered the nickel fraud in 2022, subsequently suing Gupta the following year. These fraud allegations have prompted scrutiny regarding Trafigura’s now-reinforced internal risk management protocols, impacting the reputation of one of the world’s premier metals trading firms. Consequently, several senior executives from the metals team departed for rival firms.
