Cardiff College Founder Accused of Treating £5m in Funds as Personal Money

The founder of an elite Cardiff college treated its funds as a "personal piggy bank" and helped divert millions of pounds for private use, a court has heard.

Yasmin Sarwar, 45, from Cyncoed, Cardiff, is accused of stealing around £5m from Cardiff Sixth Form College, where she was a director and trustee.

She denies nine charges of theft and fraud and is standing trial at Merthyr Crown Court.

Her former husband and fellow college founder, Nadeem Sarwar, has already pleaded guilty to stealing at least £5m from the college.

College generated millions in profits

Yasmin and Nadeem Sarwar established Cardiff Sixth Form College in 2008.

The independent college charges A-level students more than £30,000 a year, with boarding fees exceeding £70,000.

Prosecutor Mark Cotter KC told the jury that the college was structured as a charitable company but generated profits running into millions of pounds.

The prosecution alleges that instead of those funds being used for charitable purposes, the Sarwars used college money to support their own lifestyles.

Mr Cotter said Yasmin Sarwar had allegedly begun taking money that did not belong to her and later attempted to conceal what was happening.

The prosecution's case is that the alleged financial activity continued even as the relationship between the couple deteriorated.

Prosecution alleges sham companies were created

The court heard that the prosecution believes Yasmin Sarwar helped establish companies that were used to divert money away from her former husband and ultimately overseas.

Mr Cotter described her as a "willing participant" in the alleged fraudulent activity.

Those are allegations made by the prosecution and have not been established by the court.

Yasmin Sarwar denies the charges against her.

Concerns raised over college finances

The jury heard that concerns about the college's finances began to emerge several years after it was established.

As the college grew, it became subject to requirements to submit audited accounts to Companies House.

An accountancy firm appointed to prepare and audit the accounts for the year ending August 2011 subsequently told Companies House that it was unable to complete the work because of what it described as "protracted delays" in obtaining information.

The accounts were later transferred to another firm.

'Paper bag filled with cash'

The court heard that staff began raising concerns about the college's administration and working culture by 2015.

Gareth Collier, who worked as the college's head of pastoral services, reportedly raised questions with Nadeem Sarwar about expenses following an overseas trip.

The prosecution alleged that he was told to take what he needed from a brown paper bag containing cash.

The jury also heard that bank statements in his office recorded payments of £25,000 with the reference "Naz Agents Commission".

Financial review uncovers alleged irregularities

In February 2016, Drew Lewis-Robson was asked to take over the college's finances.

The prosecution said he identified irregularities and subsequently suspected that large-scale misappropriation of college funds had taken place.

The Charity Commission also became involved after concerns about the late submission of financial statements.

It announced plans to inspect the college's financial records.

According to the prosecution, the inspection uncovered concerns about the apparent mismanagement of charitable funds.

A statutory inquiry was launched and an interim manager was appointed.

£1.8m allegedly missing

The court heard that a finance assistant at the college also raised concerns about approximately £1.8m that appeared to be missing from the college's bank accounts.

The prosecution alleged that the employee was subsequently placed on leave while the Charity Commission was investigating.

When her employment ended, the prosecution said Yasmin Sarwar instructed that she should sign a non-disclosure agreement.

These matters form part of the prosecution's case against Sarwar.

Former husband has admitted stealing £5m

Nadeem Sarwar, 50, from Pentwyn, Cardiff, pleaded guilty on 29 September to stealing at least £5m between February 2008 and October 2016.

He is due to be sentenced at a later date.

Another defendant, Ragu Sivapalan, 41, from Penylan, Cardiff, also pleaded guilty to an offence relating to misleading, false or deceptive information being included in an auditor's report on a company's annual accounts.

Sivapalan was working for his father's Cardiff-based accountancy firm, Sivapalan and Co, at the time.

Both men have been granted bail pending sentencing.

Trial continues

The case against Yasmin Sarwar remains ongoing.

The prosecution must prove its allegations beyond reasonable doubt before she can be convicted.

Her former husband has admitted stealing £5m, but that guilty plea does not establish Yasmin Sarwar's guilt.

The trial at Merthyr Crown Court continues.