The chief executive and one of the partners of Abraaj Capital were arrested recently. The owners of this Dubai based company are known to defraud their American investors. The victims are Bill & Melinda Gates Foundation. This information has been provided by one of the federal prosecutors.
Last Friday Arif Naqvi was arrested at United Kingdom; he is the CEO and founder of Abraaj Capital. Mustafa Abdel Wadood, who worked as the managing partner in the company was also arrested. He was found at a hotel in New York. Andrea Griswold, who is the Assistant US attorney, provided this information at the federal court of Manhattan. Wadood has been charged with wire fraud, security fraud and conspiracy charge. He pledged himself not guilty at the court. Benjamin Brafman, who has been engaged as the attorney for Wadood did not ask the court for a bail. He informed the press that he wants to know more about the case before pledging bail in the court. According to Griswold, prosecutors are also looking for Naqvi. He is also charged with similar crimes of fraud and conspiracy.
Abraaj Capital was considered as the biggest buyout fund at Middle East and North Africa. The company was shutdown in last year May. The company collapsed after Gates Foundation accused the company of mishandling its $1 billion healthcare fund.
As per the information received on Thursday, Naqvi and Wadood had lied to the investors about the performance of the company. They are accused of inflating the price of stocks of the company by 50% of the original price. The prosecutors also informed that Abdel and Naqvi have used hundreds and millions of investor funds for their personal use or to manage the shortfall of funds. They had showcased themselves as a company looking into social causes.