Finablr PLC (LON:FIN) and NMC Health PLC (LON:NMC) founder BR Shetty has passed information onto law enforcement and regulatory authorities in the UK and UAE that a number of current and former executives at both companies have carried out “serious fraud and wrongdoing”, including using his forged signature to write loans, personal guarantees, cheques and bank transfers.
The frauds “appears to have taken place at NMC, Finablr, as well as within some of my private companies, and against me personally”, the UAE businessman said in a personal statement issued by the Travelex owner on Wednesday.
Shetty, who said that he is “vigorously pursuing all legal actions and remedies available”, said that information from his advisors from his own investigations indicated that the fraud was undertaken by “a small group of current and former executives at these companies”.
In March, NMC said investigations indicated that its debts were much higher than previously thought at US$6.6bn due to suspected fraud, while Finablr unearthed around US$100mln in previously unknown cheques that may have been used as “security for financing arrangements for the benefit of third parties”.
Companies and new powers of attorney were created in Shetty’s name seemingly “with the express intention to commit or conceal fraud”, he believes, also using existing powers of attorney.
Everything was done, he said, without his authorisation, consent or knowledge, with “members of my own management team” presenting him “false and misleading financial statements and information regarding the performance of some of my private companies and investments”.
Expenses were paid using his private companies and personal bank accounts, he said he believed, “to hide the true financials of the public companies”.
“I intend to work tirelessly to clear my name and assist any authorities in getting to the truth and help them ensure that misappropriated or missing funds are returned by the perpetrators to their rightful owners,” Shetty said.
Administrators were called in at NMC this month and earlier this week they applied for the company to delist its shares, while Finablr’s UAE business is being controlled by the emirate’s central bank and Travelex is looking for a buyer.