Dubai’s market regulator imposed a $315 million fine on Abraaj Group, the collapsed buyout firm that’s already facing legal action in the U.S.
The Dubai Financial Services Authority, which regulates the city’s financial freezone, imposed two fines on Abraaj Capital Ltd. and Abraaj Investment Management Ltd. for “serious wrongdoing” and “misusing investors’ monies,” it said in a statement on Tuesday.
The fine is the largest imposed by the regulator and comes more than a year after the buyout firm’s downfall.
Abraaj, which once managed about $14 billion, was forced into liquidation last year after being accused of mismanaging investor funds. Before that, it had been one of the world’s most influential emerging-market investors with stakes in health care, clean energy, lending and real estate across Africa, Asia, Latin America and Turkey.
“The size of these fines reflects the seriousness” of the wrongdoing, DFSA Chief Executive Officer Bryan Stirewalt, said in the statement. “Senior management rode roughshod over their compliance function and the misconduct and deceit were pervasive and persistent.”
The DFSA will “pursue the persons or entities who perpetrated this activity, including those who allowed this to happen through major corporate governance breaches, to the full extent of our powers.”