In a dramatic courtroom victory, Trafigura wins $600m nickel fraud lawsuit against Indian businessman Prateek Gupta, with London’s High Court ruling squarely in favor of the global commodities trader on Friday.
The Geneva-based trading giant had accused Gupta of orchestrating what it described as a calculated “Ponzi scheme,” promising shipments of 99.8% pure nickel but allegedly delivering cargoes that were low-grade — or in some cases, effectively worthless.
Court Finds “False and Fraudulent Representations”
Judge Pushpinder Saini concluded that Trafigura was persuaded to enter contracts based on “false and fraudulent representations” made by Gupta and his associated companies. The ruling clears Trafigura’s former employees of wrongdoing, including ex-head nickel trader Sokratis Oikonomou, who had denied any involvement in misconduct while testifying in November.
Gupta acknowledged he did not supply high-grade nickel as agreed. However, he claimed Trafigura employees had devised the structure of the transactions — an allegation firmly rejected in court.
The judge stated that Trafigura’s former staff were “wholly innocent of any wrongdoing,” dismantling Gupta’s counterclaims.
A Trafigura spokesperson said the decision “comprehensively finds in favour of Trafigura and recognises the systematic fraud perpetrated by Mr Gupta and the corporate defendants.” The company confirmed it will continue efforts to recover funds from Gupta.
A lawyer who previously represented Gupta did not immediately respond to requests for comment. Court filings indicate that the firm which acted for him at trial no longer represents him.
