Abraaj executive bailed in New York on $10m bond

Mustafa Abdel-Wadood confined to Manhattan apartment building

Abraaj Capital CEO Mustafa Abdel-Wadood listens during a news conference at the Emirates Towers on February 20, 2012. Christopher Pike / The National

Mustafa Abdel-Wadood, the former managing partner of private equity company the Abraaj Group, was granted bail by a New York judge on Monday after he put up two homes as security for a $10 million bond.

Mr Abdel-Wadood will go on trial on November 4 and will be confined to a Manhattan apartment, thought to be one of the homes he used to cover the bail requirements.

A Justice Department spokesman told The National the bail package had been approved.

He said Mr Abdel-Wadood would not be able to leave the apartment building without written court approval.

"He may use indoor facilities of the building that are generally available to residents,” the spokesman said.

The second home used to secure bail is on Long Island, east of New York City.

Mr Abdel-Wadood's detention in New York this month triggered other arrests over the collapsed company.

He appeared in a southern Manhattan court last week seeking bail, having earlier pleaded not guilty to securities fraud, wire fraud and conspiracy charges.

Along with two other former Abraaj directors who are in custody in the UK, Mr Abdel-Wadood is alleged to have tried to hide the company’s parlous financial position while seeking to tie up $6 billion (Dh22.04bn) for a new venture.

US prosecutors have set a deadline of June 30 for the disclosure of evidence in the case against him.

Extradition proceedings for Arif Naqvi and Sivendran Vettivetpillai, other executives held in Britain, are continuing, say prosecutors for the southern district of New York.

A £2m (Dh9.5m) bail for Mr Naqvi, founder of the defunct company, was rejected by a London magistrate last week over concerns that the accused could flee to his native Pakistan.

Mr Vettivetpillai was granted bail and is confined to a house in London.

He is accused of conspiring with Mr Naqvi "to inflate valuations of positions held by Abraaj Funds in order to obtain greater investment from US investors”.