Radiant World senior China trader resigns amid document fraud allegations

Leon Jin, the head of iron ore at Radiant World in China, has resigned following allegations that the commodity trader provided falsified documents to banks. The departure comes amid heightened pressure on the company’s ability to secure financing and maintain daily operations.

At least five banks have reportedly been notified that certain invoices underpinning their exposure to Radiant World are not genuine. In response, some financial institutions have frozen accounts or suspended credit lines, while several major miners and Chinese buyers have withdrawn their business.

Law enforcement agencies, including the US Justice Department and the Singapore police, are currently investigating the trader. While Radiant World has not been formally accused of wrongdoing, the situation has created significant challenges regarding working capital and the ability to cover transport and turnover costs. The company has previously implemented layoffs across its global offices.