The presentation came after losses tied to the collapses of First Brands and Market Financial Solutions. Jefferies-linked funds also face scrutiny over nearly $500 million of exposure to Radiant World, an iron-ore trader accused by lenders and traders of fraudulently supporting financing with false invoices. Radiant World denies the allegations, and Jefferies has obtained a worldwide freezing order against the company and its founder, Pinkesh Nahar.
The dispute has also reached court. Two British Virgin Islands entities known collectively as Eugenia sued Jefferies, Leucadia Asset Management and Point Bonita Capital after investing $25 million in Leucadia’s factoring programs. They allege they were misled about safeguards for repayments connected to First Brands. Jefferies denies the allegations and has asked a New York court to dismiss the case, arguing that disclosures warned servicers could misappropriate payments or act fraudulently and that sellers could sometimes be responsible for collecting receivables.
Eugenia is seeking documents about Leucadia’s financing arrangements with Radiant World, its historical exposure, fraud controls, invoice discrepancies and communications with other lenders. The litigation remains unresolved, while First Brands founder Patrick James has denied fraud allegations.
Hildene specializes in structured credit and asset-backed finance, including collateralized loan obligations, mortgage-backed securities, trust-preferred securities, housing credit and multifamily private credit. Its planned SILAC acquisition would add a life and annuity insurer focused mainly on fixed-index annuities.