Abraaj founder Arif Naqvi, managing partner arrested on fraud charges
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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.
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.
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Comments (71) Closed
Apr 12, 2019 10:27am
Shameful that this guy was part of various meetings be it economic or otherwise in PTI.
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Apr 12, 2019 10:29am
Why he has committed fraud with Bill Melinda gate charitable organization? He should be punished if he had committed fraud.
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Apr 12, 2019 10:33am
Crooks, crooks and more outright fraud... Justice
Gordon D. Walker
Canada
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Apr 12, 2019 10:52am
Be calm, it’s another BCCI type no fraud
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Apr 12, 2019 10:56am
Interestingly arif naqvi has been a close supporter of Imran Khan and JKT. No wonder IK used same method in SKMH of misappropriating public charity to buy benami properties abroad on names of sisters, and JKT used his drivers and cooks to short stocks to increase his own profits. Lets see when these two gets arrested.
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Apr 12, 2019 10:57am
@Gordon D. Walker, how can you be in Canada? Based on your comments during the entire week, it’s like you have never slept haha
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Apr 12, 2019 11:00am
He was the chief financier of PTI Election Campaign............
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Apr 12, 2019 11:07am
What we sow we reap. Hopefully a just trial reveals all, punishes the accused and provides respite for the agrieved.
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Apr 12, 2019 11:12am
@Islamabad Morning, are you insane or die heart supporter of noon league. He bought k electirc in Zardari regime and was trying to sell it to Chinese company by bribing then prime minster nawaz sherif amount of Rs 2 billion, according to international media report.
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Apr 12, 2019 11:31am
He should come back to Pakistan and contest in next elections. I am sure he will be our new prime minister.
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Apr 12, 2019 11:33am
Fraud or another BCCI like case where an emerging businessman from Pakistan is targeted?
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Apr 12, 2019 11:41am
A major financier of pti all the way. According to earler reports, he financed pti's 2013 election campain and a regular supporter of IK and pti. Lets see what our PM has to say about this arrest and on charges levelled against him. Am sure talk shows on Pakistani television tonight will provide more details about his association and deeds for pti
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Apr 12, 2019 11:43am
@Islamabad Morning,
Yes, also shameful that Nawaz and shahbaz asked him for a bribe. There is a whole WSJ article on it.
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Apr 12, 2019 12:06pm
Innocent until proven guilty. No charges yet, so they are accused. Also Asian investors and businessman should be extra careful doing any investment in the Western world, some how you will be stopped.
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Apr 12, 2019 12:09pm
@Islamabad Morning, This guy was given Sitara-I-imtiaz by the govt. in 2007. Seems like he was a master con artist who duped a lot of people .
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Apr 12, 2019 12:10pm
Naqvi has been attending a few cabinet meetings chaired by PM Khan recently. Would be interesting to see if Imran Khan continues to entertain this crook.
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Apr 12, 2019 12:11pm
That's how to treat crooks, lock them up.
When is Zardari going to face justice. The government should make a deal with him, to remain out of jail Zardari must return the billions stolen from Pakistan but he can keep 10%.
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Apr 12, 2019 12:17pm
Simple. These crooks should rot in jail for life.
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Apr 12, 2019 12:20pm
Spoiling Pakistan's name , shame on him.
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Apr 12, 2019 12:32pm
Innocent, until proven otherwise.
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Apr 12, 2019 12:38pm
Nip the evil of corruption, nepotism and cronyism in the bud, no matter where it stems from?
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Apr 12, 2019 12:42pm
Interesting the double standard continues, no U.S. Bank President's went to prison in 2008 in the largest fraud since 1929. The sale of Toxic American assets ruined the economies of the world, and instead of facing jail time these crooks were given more money to bail themselves and their friends out. Those frauds and thefts caused hospitals and pension funds to loose all their monies.
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Apr 12, 2019 12:46pm
Thank you the UK and USA regulators, also for convicting K&K, AXACT, other financial criminals from my country,while their buddeis here lead a luxurious life .
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Apr 12, 2019 12:53pm
@Gordon D. Walker, when cooks become rich, they become crooks
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Apr 12, 2019 01:02pm
Such a shame... Greed without limits leads to such reckless outright stealing...
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Apr 12, 2019 01:09pm
wow ! crooks embezzling American money get arrested and Pakistani crooks who looted millions from public enjoy asylum in UK and US resting in Mayfair apartments
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Apr 12, 2019 01:17pm
Arrested and led away in handcuffs, Zardari and talpur are laughing at the Pakistani courts.
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Apr 12, 2019 01:28pm
Somebody with vision tries something new and revolutionary to uplift the unprivelaged and the old players step in to stop, because they do not want any change in status quo. Just like what was done to BCCI. For all of you calling Nqvi crook,, should take a deeper look into matter before passing judgements.
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Apr 12, 2019 01:51pm
Nothing will.happen. in the end they will be set free.
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Apr 12, 2019 01:54pm
Bring them to Pakistan. will be highlighted by media for 05 weeks. Ultimately, all charges will be dismissed then they lived happily ever after.
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Apr 12, 2019 01:59pm
No shame. Now fraud and arrests are the norms of getting big names and positions.
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Apr 12, 2019 02:01pm
@Islamabad Morning, why because he got arrested? How about the principle of innocent before proven guilty. It's plausible that there is much more to this story than what we will get to learn through the media. Chances are it's a conspiracy.
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Apr 12, 2019 02:14pm
One must read a story of both sides, only then pass opinion or judgment. however, these quick money making investment are doing short cuts to reach higher prophets.
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Apr 12, 2019 02:19pm
@Islamabad Morning, Was also one of the biggest donors for PTI. Imran Khan should provide money trail for this.
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Apr 12, 2019 02:33pm
@Tame, I think you meant to say:
'Those who learn how to be creative and cook the books, become crooked'?
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Apr 12, 2019 02:52pm
He was biggest financer of PTI. He also attended various meetings with IK. Jaisa financer vaisee PTI
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Apr 12, 2019 02:57pm
Hope soon the same law shall apply to Dar...Hassan and Hussain Nawaz...and they too will be arrested for money laundering....cannot have double standards...On one side the entire world is talking and seems serious about money laundering and some developed countries are providing safe havens to these criminals...
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Apr 12, 2019 03:08pm
Let the true story come out. His CFO was Indian, who was working on an outdated fincial system with portfolio of $8 billion.
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Apr 12, 2019 03:18pm
How much of this money flowed in to PTI activities.
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Apr 12, 2019 03:36pm
@ehsan ,
The difference is who you steal from. West doesn’t care if you steal from the east and bring it to the west. Half of London is built on looted wealth.
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Apr 12, 2019 03:37pm
How can you put someone in jail on civil charges. No charges have been levelled yet.
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Apr 12, 2019 03:40pm
Well done for rounding up these crooks and fraudsters, this government should take note and stop wasting time with their own home gown crooks. LOCK THEM UP !
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Apr 12, 2019 04:06pm
@Gordon D. Walker, J Asage ; Now Naqvi quickly arrested but Hasan and Hussain ; Dar , ex Anbassador to USA : Gerneral Musharaff : can not by Interpol : and UK : what is this drama?
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Apr 12, 2019 04:15pm
@Furqan Ahmed, 100% Agreed
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Apr 12, 2019 04:28pm
This man ( Naqvi ) was as advising Imran Khan in finances of Pakistan. Sad!
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Apr 12, 2019 04:31pm
Greed has no boundaries, it has no nationality, it’s global. But one thing for certain, it should not be allowed under any circumstances, the greedy should be punished so severely, that no one would dare even consider exercising their thoughts
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Apr 12, 2019 05:30pm
How come this guy is arrested on charges of fraud in the UK, and we cannot have Issaq Dar arrested.
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Apr 12, 2019 05:36pm
@Islamabad Morning,
Contentious comment, wondering Abraaj owned KE and his alleged affiliation PPP co-chairperson were raising eyebrows, instead PTI.
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Apr 12, 2019 05:55pm
Shall those political parties be investigated who took funding from him?
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Apr 12, 2019 05:57pm
@Qaiser Ahmed, We also even didn't put this "guy" behind bars because he was funding PTI and was acting as advisor to honorable PM
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Apr 12, 2019 06:11pm
Dubai has become fraudsters paradise. Thousands of property investors have lost their money with no respite in site and UAE governments seems to be a part of it.
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Apr 12, 2019 06:38pm
It is true that “Greed is so destructive, that it destroys everything even in the end those who practice it.” It is however, very unfortunate and painful to visualize that these conmen, through their fraudulent financial activities on the international scene, have caused such a colossal damage to the image of the country and millions of its expatiates working in various countries, toiling day and night to boost perception of Pakistan and its people to the contrary. Let us hope their obvious fate will deter those others, suffering from similar uncontrollable greed and practicing the same tactics, to become rich overnight in a big way.
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Apr 12, 2019 06:53pm
@Mansur Ul Haque, crooks have no heart, no morals.
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Apr 12, 2019 07:12pm
Why can't the same action be taken for Ishaq Dar?
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Apr 12, 2019 07:43pm
@Spice 2000, Really is the any name left
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Apr 12, 2019 07:45pm
Innocent till proven and convicted, anyone remember that?
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Apr 12, 2019 08:34pm
@Anti_Corruption, You have no idea what these charges are and what you are talking about. Everything is not about IK, please, learn to understand the difference between SKMH and Abraaj group.
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Apr 12, 2019 08:48pm
@Kaku Sahib, nobody remember, but guilty unless proven innocent
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Apr 12, 2019 08:49pm
@Anti_Corruption, who is JTK?
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Apr 12, 2019 09:59pm
And since he was one of the top financiers of PTI we can be sure he was being encouraged to give money by the real rulers.
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Apr 13, 2019 02:05am
Mr Naqvi is a fraud ,it was just bad accounting by his incompetent finance officer.
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Apr 13, 2019 05:44am
@Irtaza M. Awan, Please update your information . BCCI was a CIA bank and Agha hasan Abdi was a CIA asset . The purpose of BCCI was to launder all the drug money from Southeast Asia .
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Apr 13, 2019 04:33pm
Arif Naqvi's Abraaj Group is making all effort to sell K-Electric to Shanghai Electric China without settling Rs.162 Billion which they owe to the Government of Pakistan to bail out Abraaj Group fraudulent Dubai business. The government should take over this entity which has become key source of money generation for Abraaj Group, This is red alert for Government.
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Apr 13, 2019 05:22pm
@Zak, :Seems you have more information that prosecutors in US UK. Hope you get some constructive consultant's job with defense team
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Apr 13, 2019 06:46pm
Stalwart--- supporter of PTI
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Apr 13, 2019 07:52pm
@Lal Kabutar, He is already serving as the CEO of Ampak gas station association.
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Apr 13, 2019 07:58pm
@Anti_Corruption,
My friend you are making wild allegations against IK, what proof do you have? Little knowledge is a dangerous thing.
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Apr 13, 2019 08:23pm
@Irtaza M. Awan,
You are absolutely right! Pakistanis are just jumping to conclusions. Delay in selling Karachi Electric led to his downfall, although the then PM was gifted $200million. I know a little about Abraaj Group, and Arif Naqvi worked in the same group in Saudi Arabia before he set up Abraaj, but we are not friends. He may have made some mistakes, but I for one wish that he will get justice,
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Apr 13, 2019 08:38pm
@jahan ,
You are talking absolute rubbish without an iota of truth! There was one case of money laundering of $10million by their Miami branch manager. It is a long story but the fact is the West could not tolerate an Asian bank which was the fastest growing bank in the world in the early 80’s.
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Apr 14, 2019 04:20am
First Axact. Now Abraaz. When will the honest people of Pakistan stand up?
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Apr 14, 2019 01:37pm
Our elite are very corrupt and that is the reason for Pakistan's problems.....
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