Mustafa Abdel-Wadood is one of six former Abraaj executives who have been charged in the case following an investigation by New York prosecutors.
Sunday 30, June 2019
A former Abraaj Group executive has pleaded guilty to conspiracy charges and agreed to cooperate with US prosecutors probing a scheme that led to the world’s biggest private-equity insolvency in 2017, reported Bloomberg.
Mustafa Abdel-Wadood, a former Managing Partner at the Dubai-based firm, entered the plea in federal court in Manhattan to charges he conspired to violate racketeering laws and commit securities fraud.
Abdel-Wadood was arrested in April in New York while on a college-shopping trip with his wife and son and since then he has been confined to his home in New York and subject to a $10 million bond.
The judge said Abdel-Wadood had agreed to cooperate with prosecutors as part of his plea agreement, asking him if he understood that he could be sentenced to 125 years in prison if all the terms for each charge were served consecutively.
Abraaj, which was founded in 2002, was the Middle East’s biggest private equity fund and one of the world’s most influential emerging-market investors with stakes in health care, clean energy, as well as lending and real estate.
Arif Naqvi gave up control of the firm last year after it was disclosed that revenue had not covered operating costs for years.