Abu Dhabi, UAETuesday 23 July 2019

Three more Abraaj executives face US fraud charges

The collapsed Dubai private equity firm's former managing partner, vice president and former chief financial officer have all been charged with fraud and conspiracy

Three more Abraaj executives face fraud charges in the United States. EPA
Three more Abraaj executives face fraud charges in the United States. EPA

US prosecutors on Thursday unveiled criminal charges against three more former executives of Abraaj Capital Ltd, accusing them of taking part in a massive international scheme to defraud investors.

The collapsed Dubai private equity firm's former managing partner Waqar Siddique, former vice president Rafique Lakhani and former chief financial officer Ashish Dave have all been charged with fraud and conspiracy, according to an indictment unsealed in the Manhattan federal court.

Three other former Abraaj executives, including founder Arif Naqvi, were charged earlier this year. It was not immediately clear whether any of the newly named defendants had been arrested.

James Margolin, a spokesman for the US Attorney's office in Manhattan which is prosecuting the case, declined to comment.

Abraaj had been the largest buyout fund in the Middle East and North Africa until it collapsed in the middle of 2018 after investors, including the Bill & Melinda Gates Foundation, raised concerns about the management of its $1 billion healthcare fund.

US prosecutors have said that from about 2014 until Abraaj's collapse, executives lied about the performance of Abraaj's funds, inflating their value by more than $500 million.

Arif Naqvi. Reuters
Arif Naqvi. Reuters

Prosecutors have said "at least hundreds of millions" of investor funds were misappropriated, either to disguise liquidity shortfalls or for the personal benefit of executives.

Mr Naqvi and former Abraaj managing partner Sev Vettivetpillai were arrested in the UK in April and have been freed on bail while US authorities seek their extradition.

Former managing partner Mustafa Abdel-Wadood was arrested in New York in April and also released on bail.

Updated: June 13, 2019 09:14 PM

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