Abraaj founder released from custody after $19m bail payment

Naqvi was being held in London on charges of defrauding investors

LONDON: Arif Naqvi, the founder of collapsed private equity firm Abraaj Group, has been released from custody after meeting bail conditions including the payment of a £15 million ($19 million) security, a court official said.

Naqvi was being held at Wandsworth Prison in London after he was arrested in April in connection with charges he faces in the United States of defrauding investors including the Bill and Melinda Gates Foundation.

"These past weeks have been an extremely challenging time for Naqvi and his family," said a statement released on Naqvi's behalf via a PR firm.

"He maintains his innocence, and he fully expects to be cleared of any charges. Naqvi has repeatedly stated his commitment to be a positive force in resolving this situation for all stakeholders."

A London court ruled on May 3 that Naqvi would be able to leave custody if he met his bail conditions, including the payment of £15 million and an additional surety of £650,000.

The conditions also included a requirement to surrender his Pakistani passport, to wear an electronic tag and to remain under 24-hour curfew at an address given to the court, a prosecution spokesman said at the time.

A court official said on Wednesday that Naqvi was released late on Tuesday after the bail conditions were met.

Naqvi is required to appear again at Westminster Magistrates Court on June 12, the court official said.

Abraaj, once the Middle East and North Africa's biggest buyout fund, began to unravel after a row with investors over the use of money in a $1 billion healthcare fund.

Earlier, the US Securties and Exchange Commission alleged that Naqvi and his firm raised money for the Abraaj Growth Markets Health Fund, collecting more than $100 million over three years from US-based charitable organisations and other US 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 Ltd and its parent company, and used it for purposes unrelated to the health fund.