Abraaj founder Arif Naqvi says US charges 'politically motivated'

LONDON: Abraaj founder and Pakistani businessman Arif Naqvi has told a court here that over a dozen charges brought against him and other Abraaj executives by the United States government in relation to the collapse of Abraaj are "politically motivated".

Before the Westminster Magistrate’s Court, Naqvi’s lawyer said his client believes the US case against him is politically motivated because Abraaj threatened US interests. The lawyer didn’t specify which US interests and didn’t go into details during the short course of the hearing where it was decided that Naqvi’s trial for extradition to America will start next year in February at the Magistrate’s Court.

Submission by Naqvi’s lawyer before the Magistrate’s court set the tone of his defence, which is likely to rely on arguments that Naqvi will not get a chance to a fair trial in the US due to political reasons, bias and victimisation by media if extradited by the British government on request of the US.

"We're not able to expand on the arguments outlined in court," a spokesman for the Abraaj founder said, "Mr Naqvi continues to maintain his innocence, and he fully expects to be cleared of any charges."

US prosecutors have accused Naqvi and former Abraaj executives of fraudulently inflating the value of the firm's investments by more than $500 million. The firm went into liquidation last year but Arif Naqvi has strictly denied any personal liability and has vigorously maintained his innocence.

Meanwhile, former Abraaj Managing Partner Mustafa Abdel-Wadood, 49, entered his plea before Magistrate Judge Gabriel Gorenstein in Manhattan, agreeing to cooperate with US prosecutors in a criminal fraud case targeting five other former Abraaj executives: Arif Naqvi, the founder and ex-chief executive officer; Chief Financial Officer Ashish Dave; and managing directors Sivendran Vettivetpillai, Rafique Lakhani and Waqar Siddique.

A few days ago, the US attorney's office for the southern district of New York brought charges against three more former senior executives of Abraaj. The new charges were introduced against Ashish Dave, Rafique Lakhani and Waqar Siddique. They have joined Naqvi, Wadood, and Sev Vettivetpillai who were charged around three months ago.

Wadood has pleaded guilty to multiple charges, including racketeering, securities fraud, and wire fraud, and faces up to 125 years in prison. He had pleaded not guilty to the charges earlier this year but changed his mind recently.

Arif Naqvi secured conditional bail from the court here after paying the largest ever bail cash deposit of more than £15 million before the Westminster Magistrate's Court. He lives at his Kensington home under curfew.

Naqvi has described charges against him as "ludicrous", denying any wrongdoing. At its peak, Abraaj managed funds of more than $14 billion and Naqvi was the driving force of the enterprise.