Indian Businessman Denies Fraud Allegations
Prateek Gupta, an Indian businessman, has pushed back against claims that he funneled millions to his wife and associated corporate entities, as Trafigura alleges that the missing funds are part of a larger fraud scheme.
According to the commodity trading company, it has incurred losses of around $600 million, claiming that Mr. Gupta and the companies he controls executed a “coordinated fraud.” Trafigura has filed a lawsuit against him in the High Court in London.
During court proceedings on Thursday, Mr. Gupta stated that he was unaware of the money’s whereabouts, saying, “I can’t remember the exact breakdown.”
This prompted a questioning response from Nathan Pillow KC, the attorney for Trafigura: “So you just lost hundreds of millions and you don’t remember where it went?”
To which Mr. Gupta replied without hesitation, indicating the ambiguity of the situation, “There is no answer to that.” Pillow further challenged him, saying, “You wouldn’t do that because you’re lying.” Gupta staunchly refuted this: “I’m not lying.”
Mr. Gupta, who claims that Socrates Economou, a former prominent nickel trader at Trafigura, orchestrated the scheme involving the transport of nickel mixed with low-value materials, maintains that he had no involvement in the plan. Economou has firmly denied any knowledge of such an arrangement.
When questioned further, Mr. Gupta, currently located in Dubai, rejected the accusations that he had sent any money to his wife or to executives within his companies. He also disagreed with Pillow’s insinuation that he used Trafigura’s funds to settle debts elsewhere, saying, “No, I don’t agree with that.”
In a witness statement, he explained that his company, UD Group, faced dwindling cash reserves in early 2021 during the negotiation of the deal. He pointed out in court that a “substantial” portion of the funds was put towards shipping costs and interest. However, he admitted he couldn’t specify what happened to the funds from Trafigura intended for the nickel shipment.
The businessman has provided testimony throughout the trial, frequently asserting that he did not manage the operational details of the agreement.
The trial is ongoing.
