Abraaj founder Arif Naqvi, managing partner arrested on fraud charges.

[Clutch]

Abraaj founder Arif Naqvi, managing partner arrested on fraud charges

ReutersApril 12, 2019
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This file photo shows Abraaj founder and Chief Executive Arif Naqvi speaking at an event. — Reuters

The chief executive and a managing partner of the collapsed Dubai private equity firm Abraaj Capital Ltd were arrested on United States charges that they defrauded their investors, including the Bill & Melinda Gates Foundation, a federal prosecutor said on Thursday.

Abraaj founder and Chief Executive Arif Naqvi was arrested in the United Kingdom last Friday, while managing partner Mustafa Abdel-Wadood was arrested at a New York hotel on Thursday, Assistant US Attorney Andrea Griswold said at a hearing in Manhattan federal court.

Abdel-Wadood appeared at the hearing and pleaded not guilty to securities fraud, wire fraud and conspiracy charges. His lawyer, Benjamin Brafman, did not immediately request bail, saying he needed more time to become familiar with the case.

Griswold said prosecutors would seek to have Naqvi, who is charged with the same crimes, extradited. Casey Larsen, a spokesman for Naqvi, could not immediately be reached.

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Abraaj had been the largest buyout fund in the Middle East and North Africa until it collapsed last May, after the Gates Foundation and other investors raised concerns about the management of its $1 billion healthcare fund.

In brief indictments unsealed on Thursday, prosecutors said that from about 2014 until the collapse, Naqvi and Abdel-Wadood lied about the performance of Abraaj’s funds, inflating their value by more than half a billion dollars.

Prosecutors also said that Naqvi and Abdel-Wadood caused “at least hundreds of millions” of investor funds to be misappropriated, either to disguise liquidity shortfalls or for their personal benefit or that of their associates.

Griswold said that Abraaj had represented itself as a pioneer of “impact investing” that promoted social progress, for example by investing in hospitals in developing countries.

“In truth, Abraaj was engaged in a massive fraud,” she said.

The indictments were short on detail, Griswold said, because authorities moved quickly to arrest Abdel-Wadood upon learning he was in the US with his wife and son to visit colleges.

She said prosecutors intended to file more detailed charges by the end of May.

After the hearing, Abdel-Wadood spoke briefly to his wife, who had watched from the courtroom gallery, before US marshals led him away in handcuffs.

Abraaj and Naqvi face related civil charges filed on Thursday by the US Securities and Exchange Commission.

 

[Clutch]

• When rich White Westerns like Bill Gates are defrauded by corrupt Pakistanis they get arrested in a second by Washington and London!
• 
  
• But when poor Pakistani populace are defrauded by corrupt Pakistanis the corrupt get asylum and protection in London and Washington!

Why is that???

Mr. Naqvi himself started a $100 million charity in his home country of Pakistan, and funded students attacked by the Taliban. He accumulated estates in England and France, a $20 million yacht, a private jet and Asian and Middle Eastern art.

 

[nahtanbob]

• When rich White Westerns like Bill Gates are defrauded by corrupt Pakistanis they get arrested in a second by Washington and London!
• 
  
• But when poor Pakistani populace are defrauded by corrupt Pakistanis the corrupt get asylum and protection in London and Washington!

Why is that???

Mr. Naqvi himself started a $100 million charity in his home country of Pakistan, and funded students attacked by the Taliban. He accumulated estates in England and France, a $20 million yacht, a private jet and Asian and Middle Eastern art.

file a case in well established court of law. establish the money trail. prove your case

 

[Clutch]

file a case in well established court of law. establish the money trail. prove your case

We have trails coming out out of our wazoos...

Just look at Altaf Hussain... Guilty of probably killing over 10,000 people in Karachi and laundering money for decades... Untouchable.

The Zardari clan who used to sell movie tickets at a cinema with $Million of property in London... And Swiss accounts full with billions.... Untouchable in London.

London is a favorite hideout for most 3rd world corrupt despots...

Yet they say... Show us the money trail???

 

[crankthatskunk]

• When rich White Westerns like Bill Gates are defrauded by corrupt Pakistanis they get arrested in a second by Washington and London!
• 
  
• But when poor Pakistani populace are defrauded by corrupt Pakistanis the corrupt get asylum and protection in London and Washington!

Why is that???

Mr. Naqvi himself started a $100 million charity in his home country of Pakistan, and funded students attacked by the Taliban. He accumulated estates in England and France, a $20 million yacht, a private jet and Asian and Middle Eastern art.

The difference in treatment is because of our justice system.

When you have courts like Lahore, Islamabad, Sind High Courts and jokers in SCP gives verdict that a prisoner can take a break because he is suffering from stress. Then don't blame the Western powers not to take your justice system seriously.

In Europe game is very clear, their lawyers submit applications that their clients would not get justice in Pakistan and if convicted face a real possibility of death sentence. Once that is given no judge in the west would agree to the extradition to Pakistan.

Do you seriously think what is happening in last few days in Higher Pakistani Courts give even Pakistanis any trust on them!!!

 

[nahtanbob]

We have trails coming out out of our wazoos...

Just look at Altaf Hussain... Guilty of probably killing over 10,000 people in Karachi and laundering money for decades... Untouchable.

The Zardari clan who used to sell movie tickets at a cinema with $Million of property in London... And Swiss accounts full with billions.... Untouchable in London.

London is a favorite hideout for most 3rd world corrupt despots...

Yet they say... Show us the money trail???

people in the pakistani state have choose to support these guys at one time or the other
do not make a political problem a legal one

 

[Imran Khan]

he should say my case to be shifted in Lahore high court