The former managing partner of "Abraaj" was fined 7 million dirhams for his involvement in wrongdoing

Today, the Dubai Financial Services Authority published a notice of its decision against the former managing partner of the Abraaj Group, Mustafa Abdel-Wadoud, in which it fined him an amount of seven million and 78 thousand and 725 dirhams, in addition to preventing and restricting him from practicing any activity related to providing financial services in or from the Dubai International Financial Center. .

The authority clarified in a statement that Abdul-Wadud was one of the senior members of the senior management of the Abraaj Group for more than a decade, during the period between July 2006 and February 2018, where he held several positions in the group, including the position of managing partner, head of international private equity, and a member of the board of directors. .

She added that as of April 2010, Abdul-Wadood also held the position of Senior Executive Officer at Abraaj Capital Limited, a subsidiary of the Abraaj Group and licensed by the Dubai Financial Services Authority.

The authority decided to take its measures against Abdul-Wadud, for his involvement in violations of the authority’s legislation committed by “Abraaj Investment Management Limited”, an entity registered in the Cayman Islands and not licensed by the Dubai Financial Services Authority.

Abraaj Investment Management Ltd. had engaged in unauthorized financial services activities in and from the Dubai International Financial Center, and had deceived and misled investors in Abraaj's funds.

In particular, Abd al-Wadud was involved in misusing investors' funds, withholding returns and sales reports from investors and providing false interpretations to them, as well as covering up a $200 million shortfall in the fund when submitting his financial report.

According to the Dubai Financial Services Authority, Abdel-Wadood admitted and admitted to all the charges against him by the US Department of Justice, and stated in his guilty plea that "he stood idly by and silent when the Abraaj company exaggerated its record of achievements and falsely described its financial position."

Abdul-Wadud was also involved in the operations of Abraaj Investment Management Ltd., which engages in unauthorized financial services activities, by participating in the management of Abraaj funds from within the Dubai International Financial Center, in addition to his role as a permanent member of the global investment committee of Abraaj. Investment Management Ltd.

As a Senior Executive Officer of Abraaj Capital Limited, Abdul-Wadood assumed significant responsibility for the conduct of the company's business, but failed to take reasonable measures to ensure that the company complied with applicable legislation in the DIFC, failing to find that the prudential returns and financial statements that Sign it contains false and misleading information.

Nor has it taken any steps to stop Abraaj Investment Management Limited from using the resources of Abraaj Capital Limited to conduct unauthorized activities in or from the DIFC.

The fine imposed reflects the severity of the violations, and is based on Abdul-Wadood's earnings from the Abraaj Group.

In determining the amount of the fine, the DFSA took into account the significant level of cooperation that Abdul-Wadood has provided and continues to provide to the DFSA and US authorities.

There is no evidence to suggest that Abdel-Wadood received any direct financial benefit as a result of his actions.

Christopher Calabia, CEO of the DFSA, said: “Abdul-Wadud was a senior member of the senior management and one of the most influential people in the Abraaj Group. His position within the group and his reputation among investors allowed the Abraaj Group to conceal its true financial position and the extent of its misuse of investors’ funds.”

"But over the past two years, Abdul-Wadud has been cooperating with the US authorities and the Dubai Financial Services Authority, which has led to a reduction in the fine imposed on him," he added.

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