2019-04-11 sec-litreleases litigation_release 65 KB 1,739 chars

SEC v. Arif M. Naqvi; and Abraaj Investment Management Limited, No. LR-24449, Southern District of New York (Apr. 11, 2019) — Press Release

raw: Arif M. Naqvi and Abraaj Investment Management Limited

Arif M. Naqvi and Abraaj Investment Management Limited, No. 1:19-cv-03244 (S.D.N.Y. Apr. 11, 2019)

Caption
Securities and Exchange Commission v. Abraaj Investment Management Limited
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summary

Arif M. Naqvi and Abraaj Investment Management Limited misappropriated over $100 million from the Abraaj Growth Markets Health Fund, and face SEC charges for violating antifraud provisions of the Investment Advisers Act of 1940.

paragraph

Arif M. Naqvi and Abraaj Investment Management Limited allegedly misappropriated over $100 million from the Abraaj Growth Markets Health Fund, which was raised from U.S.-based charitable organizations and investors. The SEC charges include violations of Sections 206(1), 206(2), and 204 of the Investment Advisers Act and Rule 206(4)-8. The SEC seeks permanent injunctions, disgorgement with interest, and civil penalties.

narrative

The Securities and Exchange Commission (SEC) charged Arif M. Naqvi and Abraaj Investment Management Limited with misappropriating over $100 million from the Abraaj Growth Markets Health Fund. The fund was raised from U.S.-based charitable organizations and investors over three years. Naqvi and his firm allegedly commingled Health Fund assets with corporate funds and used the money for unrelated corporate expenses, while issuing false financial statements to conceal the fraud. The SEC charges include violations of Sections 206(1), 206(2), and 204 of the Investment Advisers Act and Rule 206(4)-8, all relating to antifraud provisions. The SEC seeks permanent injunctions, disgorgement with interest, and civil penalties. The litigation will be handled by SEC attorneys in Manhattan. The SEC's investigation was conducted by David A. Neuman, David A. Becker, and Deborah Russell.

Enriched metadata

Scheme
financial-fraud (92%)
Court
Southern District of New York
Case No.
1:19-cv-03244
Victim loss
$100,000,000
Entity
Abraaj Investment Management Limited
Classified financial-fraud(confidence 92%). EDGAR detection: forms 10-K/10-Q/8-K/NT 10-K· recall 67% / precision 23%. detection rule →
Statutes
Sections 206(1), 206(2) and 204 of the Investment Advisers ActSections 206(1), 206(2) and 204 of the Investment Advisers ActSections 206(1), 206(2) and 204 of the Investment Advisers Act
Parties
Securities and Exchange CommissionAbraaj Investment Management LimitedArif NaqviArif M. Naqvi
Keywords
abraaj investmentinvestment managementnaqvi abraajmanagement limitednaqviinvestmentabraajmanagementarif naqvihealth fundseclimitedfundariffirm

Exhibits & Attached Documents (2)

Extracted insights

Dollar amounts 1
  • $100.00M $100 million $100M–$1B
Entities 4
  • company abraaj investment management limited
  • company arif m. naqvi and abraaj investment management limited
  • agency Securities and Exchange Commission
  • organization Securities and Exchange Commission
Triples 14
  • Securities and Exchange Commission charged Arif M. Naqvi and Abraaj Investment Management Limited
  • Arif M. Naqvi and Abraaj Investment Management Limited misappropriating funds from a private equity fund client
  • Naqvi and his firm raised money for the Abraaj Growth Mar
  • Abraaj Investment Management Limited is a Dubai-based investment advisory firm
  • Arif M. Naqvi and Abraaj Investment Management Limited charged with misappropriating funds from a private equity fund client
  • Arif M. Naqvi misappropriated funds from a private equity fund client
  • Abraaj Investment Management Limited misappropriated funds from a private equity fund client
  • Arif M. Naqvi founded Abraaj Investment Management Limited
  • SEC charged Arif M. Naqvi and Abraaj Investment Management Limited
  • SEC filed lawsuit Securities and Exchange Commission v. Arif M. Naqvi and Abraaj Investment Management Limited
  • Arif M. Naqvi led Abraaj Investment Management Limited
  • Abraaj Investment Management Limited raised money for Abraaj Growth Fund
  • The Securities and Exchange Commission charged Arif M. Naqvi and Abraaj Investment Management Limited
  • The SEC alleges Naqvi and his firm raised money for the Abraaj Growth Mar
PDF (from attached: complaint)
Comp24449 · Source
Text layers
Extracted body text (1,739c) 
SEC Charges Dubai-Based Advisory Firm and Its Founder Litigation Release No. 24449 / April 11, 2019 Securities and Exchange Commission v. Arif M. Naqvi and Abraaj Investment Management Limited, No. 1:19-cv-03244 (S.D.N.Y. filed April 11, 2019) The Securities and Exchange Commission today charged Arif M. Naqvi and Abraaj Investment Management Limited, a Dubai-based investment advisory firm, with misappropriating funds from a private equity fund client. The SEC alleges that Naqvi and his firm raised money for the Abraaj Growth Markets Health Fund ("Health Fund"), collecting more than $100 million over three years from U.S.-based charitable organizations and other U.S. investors. According to the SEC's complaint, Naqvi misappropriated money from the Health Fund and commingled the assets with corporate funds of Abraaj Investment Management Limited and its parent company, and used it for purposes unrelated to the Health Fund. The SEC alleges that Naqvi and his firm made misrepresentations to investors and issued false and misleading financial statements to hide that they were spending investor money in unrelated ways. The SEC's complaint, filed in federal district court in Manhattan, charges Naqvi and Abraaj Investment Management with violating the antifraud provisions of Sections 206(1), 206(2) and 204 of the Investment Advisers Act of 1940 and Rule 206(4)-8 thereunder. The SEC seeks permanent injunctions, disgorgement plus interest, and penalties. The SEC's investigation is being conducted by David A. Neuman and David A. Becker of the SEC's Asset Management Unit, and Deborah Russell located in Washington, DC. The litigation will be handled by Matthew Scarlato and Jan M. Folena. SEC Complaint SEC Amended Complaint
OCR text (1,739c · html-text · 99% conf) 
SEC Charges Dubai-Based Advisory Firm and Its Founder Litigation Release No. 24449 / April 11, 2019 Securities and Exchange Commission v. Arif M. Naqvi and Abraaj Investment Management Limited, No. 1:19-cv-03244 (S.D.N.Y. filed April 11, 2019) The Securities and Exchange Commission today charged Arif M. Naqvi and Abraaj Investment Management Limited, a Dubai-based investment advisory firm, with misappropriating funds from a private equity fund client. The SEC alleges that Naqvi and his firm raised money for the Abraaj Growth Markets Health Fund ("Health Fund"), collecting more than $100 million over three years from U.S.-based charitable organizations and other U.S. investors. According to the SEC's complaint, Naqvi misappropriated money from the Health Fund and commingled the assets with corporate funds of Abraaj Investment Management Limited and its parent company, and used it for purposes unrelated to the Health Fund. The SEC alleges that Naqvi and his firm made misrepresentations to investors and issued false and misleading financial statements to hide that they were spending investor money in unrelated ways. The SEC's complaint, filed in federal district court in Manhattan, charges Naqvi and Abraaj Investment Management with violating the antifraud provisions of Sections 206(1), 206(2) and 204 of the Investment Advisers Act of 1940 and Rule 206(4)-8 thereunder. The SEC seeks permanent injunctions, disgorgement plus interest, and penalties. The SEC's investigation is being conducted by David A. Neuman and David A. Becker of the SEC's Asset Management Unit, and Deborah Russell located in Washington, DC. The litigation will be handled by Matthew Scarlato and Jan M. Folena. SEC Complaint SEC Amended Complaint

Related documents (2)