BYJU’S Co-Founder Byju Raveendran Held in Contempt Over $533M Fraud Case

At the U.S. bankruptcy court, the co-founder and the parent company of the ed-tech giant BYJU’s are watching the legal stakes increase by the day. Judge John T. Dorsey found him and related parties guilty of contempt and imposed a hefty daily fine while lenders pursue $533 million that had allegedly been transferred to a “sham” hedge fund. BYJU’S Co-Founder Byju Raveendran Held in Contempt Over $533M Fraud Case.

BYJU’S Co-Founder Byju Raveendran Held in Contempt:

In February, Judge Dorsey found that BYJU’s had transferred over $533 million from a U.S. financing vehicle into Camshaft Capital Fund, characterized as a “high-risk and unproven hedge fund”, as part of a fraudulent scheme.

The court also found William Morton, the head of Camshaft, guilty of contempt and ordered him to pay a fine of $10,000 per day until he complied with discovery demands.

Lenders Demand Accountability
The creditors claim that Raveendran, his wife Divya Gokulnath, and others “masterminded the theft of more than half a billion dollars.”

“We are gratified that the Court unequivocally recognized that Riju Ravindran, Camshaft, and BYJU’s together conducted a deliberate fraud on a global scale,” proclaimed their statement.

Another press release stated:

“Byju, Divya, and Anita deliberately hid the assets, breaching fiduciary duties and making numerous misrepresentations.”

Missing Funds and Ongoing Recovery
The creditors discovered, however, that notwithstanding orders from court to freeze the U.S. bank accounts, the money had already been transferred abroad via Camshaft and thence to offshore entities.

ALSO READ: Did You Know How Much Business Cafe Niloufer Makes in One Day?

The claim thus seeks recovery of the $533 million, damages for breach of fiduciary duty, and contempt fines. Tracing the funds now poses an enormous challenge, with reports stating Morton has fled overseas and Raveendran is presently in Dubai.