Fraud claims dismissed after decade-long legal battle

In a dramatic conclusion to a nearly decade-long legal battle, the London Commercial Court has dismissed claims of a $335 million oil trading fraud brought by John Fredriksen’s Farahead Holdings against former Arcadia Petroleum executives Peter Bosworth and Colin Hurley. The court found that the allegations were baseless, ruling that the two had acted honestly, with loyalty and diligence towards Arcadia.

Mr Bosworth and Mr Hurley had faced a worldwide asset freeze since the start of the proceedings, hindering their ability to work and defend themselves effectively. The freezing order was based on an affidavit sworn by Arcadia's then-CEO Paul Adams, who later refused to appear for cross-examination.

In his 429-page judgment, Mr Justice Henshaw rejected Farahead's claims of secret and unauthorised trading, instead finding that senior Farahead representatives, including Mr Fredriksen, were aware of and profited from the transactions. A “smoking gun” document, disclosed accidentally before the trial, further exposed the falsity of the claims.

The case exacted a heavy toll on the defendants, who were forced to liquidate assets and endure immense personal and financial hardship. Their solicitor, Ted Greeno of Quinn Emanuel, criticised the abuse of the legal system, calling it a "gross injustice" that allowed baseless claims to persist for so long.

Ultimately, the judgment exonerates Mr Bosworth and Mr Hurley, vindicating their honesty and professional conduct while calling for reform to prevent similar cases in the future.