A US district court has granted bail to a former managing partner of collapsed private equity firm Abraaj, Mustafa Abdel-Wadood, on condition that he sign a $10m bond and remain confined to a New York apartment, court documents showed.
Abdel-Wadood, 49, is facing fraud charges after allegedly working with former Abraaj CEO Arif Naqvi to defraud investors of hundreds of millions of dollars before the $13bn private equity firm collapsed last year.
Judge Lewis A. Kaplan of the US District Court for the Southern District of New York signed off on a $10m bond package for Abdel-Wadood. The agreement was secured by four cosigners, three of whom are US citizens, according to a previous court filing by his defence. The bond includes an apartment in New York City and a home on Long Island, owned by two of the cosigners, according to a report by the Wall Street Journal.
If he were to be granted bail, I'd be extremely concerned he would leave the country"
As part of the bail agreement, Abdel-Wadood was placed under house arrest at a New York apartment, where he will be required to wear an electronic monitoring device at all times.
Last week the court said Abdel-Wadood's trial is tentatively slated for November. He has pleaded not guilty. Paul Shechtman, his attorney, declined to comment on the case.
Abraaj CEO Arif Naqvi was arrested in London in the same case and has been remanded in custody there until a May 24 hearing for his extradition to the United States.
Naqvi had pleaded his innocence through a statement by his PR firm. He was denied bail by a London judge after prosecutors deemed him a flight risk, due to the fact he wrote down the phone number of the Pakistani president when he was arrested earlier this month.
"I'm concerned to see he had the president's number on him… If he were to be granted bail, I'd be extremely concerned he would leave the country," Judge Emma Arbuthnot told the Westminster Magistrates Court, according to Bloomberg.
US prosecutor Andrea Griswold told Judge Kaplan last week that Naqvi's extradition case could take a year or up to two years if his lawyers appeal.
Another Abraaj executive, managing partner Sivendran Vittivetpillai, was arrested in London on April 19 and is also charged with defrauding investors and manipulating fund valuations.
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