SL Abraaj executive accepts personal fraudulent conduct
LONDON: The US government prosecutors told a judge at the Southern District Court of New York that former Abraaj managing partner Sivendran Vettivetpillai’s assertion was false that he didn’t take part in the irregularities at Abraaj but was, in fact, fully aware of what was going on and that he could have done more.
Court papers from the United States District Court, Southern District of New York, show US Prosecutor, Andrew Thomas, Assistant United States Attorney on behalf of the US government, stating it was prepared to prove that Abraaj knowingly “…..used investor funds to cover liquidity shortfalls, used new investor funds to cover existing investment commitments, and delayed promised investments because the funds had been spent improperly on other uses.”
Another Abraaj Partner, Mustafa Abdel-Wadood, has also pleaded guilty to the similar criminal charges but Arif Naqvi has denied each and every allegation and he’s fighting the US extradition bid. Magistrate Judge Netburn warned the British national, who also is a citizen of Sri Lanka, that she will issue a warrant for his arrest for violating any of the conditions of bail and anyone who signed the bond will be responsible for paying the full amount, $10 million, and he may also be charged with a separate crime of bail jumping. “In addition, if you commit an offense while you are released, you may be subject to a more severe punishment than you would receive if you had committed the offense at any other time,” said the judge.
Sivendran Vettivetpillai was charged and pleaded guilty to a total of 11 criminal counts, which include racketeering conspiracy, conspiracy to commit securities fraud, securities fraud, wire fraud, concealment money laundering, international promotional money laundering conspiracy, conspiracy to defraud the United States and theft of public funds. He pled guilty to nine charges.
Sivendran Vettivetpillai told the court that in pleading guilty and accepting that he was involved in corrupt practises, he was giving up the right to a trial and all of his other rights.
Sivendran Vettivetpillai, also known as Sev Vettivetpillai, said that he “owed all Abraaj's investors a duty of candor and disclosure” and he “breached that duty by not doing more to ensure that they had the same information he had about financial instability and potential misconduct at Abraaj…” Sivendran Vettivetpillai confessed to the judge, “I compromised the integrity of my judgment, and for that I am disappointed with myself and very sorry. I do accept full responsibility for my role in what happened, and I will regret it for the rest of my life.”
In pleading guilty to 15 criminal counts, Sivendran Vettivetpillai said he communicated regularly with at least one other member of Abraaj regarding the financial improprieties and knew that the nature of his conduct was intended to mislead investors and would in fact do so and so was “intentionally not stopping…or taking action that would have prevented the criminal activity.”
The court told Sivendran Vettivetpillai that the total possible maximum sentence of incarceration on all counts would be 145 years of imprisonment and could also include certain financial penalties.
Although, the plea and cooperation agreement agreed between Sivendran Vettivetpillai and the US government has been “sealed”, court papers do reveal he has already “agreed to forfeit to the United States an interest that was acquired or maintained as a result of the racketeering activity” and has also “agreed to forfeit to the United States any and all real property, real or personal property that constitutes or is derived from the commission of the offenses”.
It is believed one of the “financially responsible persons” to have cosigned Sivendran Vettivetpillai’s $10 million surety bond is his wife.
The Sri Lankan-born former Abraaj executive offered the court a vast array of personal properties located around the world to try and satisfy his bail conditions. Court papers list these as being in some of London’s most expensive districts including mansions in Glenthorne Road in the London Borough of Hammersmith & Fulham, Queen’s Gate Terrace in the Royal Borough of Kensington & Chelsea, Copse Wood Way in Northwest London as well as property in the DIFC, Dubai and in Columbo, Sri Lanka.
The honourable judge set Sivendran Vettivetpillai’s next hearing before the Southern District of New York Court for January 26, 2022.
