Couple Accused of Using Private School as 'Piggy Bank' for Lavish Lifestyle
Prosecutors allege over £5 million in school fees were diverted for luxury goods and personal expenses.
A couple accused of operating a top private sixth-form college allegedly treated it as a personal 'piggy bank,' siphoning over £5 million from school fees to fund a lavish lifestyle, a court has heard.
Yasmin Sarwar, 48, and her husband Nadeem Sarwar, 50, established Cardiff Sixth Form College as a charity. Prosecutors allege they misappropriated tens of thousands of pounds from the charity for luxury items, including Rolex watches and grand pianos.
The jury was presented with details of financial transfers from the college, marked as 'expenses,' totaling tens of thousands of pounds. Among the purchases were a £30,000 yellow gold Rolex, bought in December 2013, and a pair of platinum and diamond ear studs for approximately £23,000.
In February 2014, two grand pianos were purchased. A £2,688 Kawai piano was delivered to the college, while a more expensive £13,312 Kawai was delivered to the Sarwar family home.
Prosecutor Mark Cotter KC described Yasmin Sarwar as a 'wilful, intelligent, and manipulative woman' who was a 'willing participant in fraudulent activity.' He stated that the couple 'raided the funds that college generated to fund their own lavish lifestyles and thereby defrauded the charity.' The prosecution contends that their actions were so pervasive that accountants could not produce proper audited accounts.
Nadeem Sarwar has admitted to stealing £5 million from the college between February 2008 and October 2016. Yasmin Sarwar denies nine theft and fraud charges totaling over £5 million during the same period.
The court heard that after the couple's relationship deteriorated, Yasmin Sarwar allegedly set up sham companies to divert substantial sums of money. She is accused of establishing two companies, Ayass Ltd and Ayass Guardianship Ltd, ostensibly for student welfare programs, but which allegedly siphoned funds from the college into her own accounts.
Concerns about the college's finances were reportedly raised after a new Head of Pastoral Services, Gareth Collier, was hired in September 2015. He allegedly discovered a 'culture of fear' and became suspicious after being told by Nadeem Sarwar to 'take what he needed' from a bag of cash when inquiring about expenses for an overseas trip. Collier also noted bank statements referencing large payments for 'Naz Agents Commission.'
When confronted with these concerns, Yasmin Sarwar reportedly blamed her husband. The college also faced scrutiny when it was late submitting financial statements. During an inspection by the Charity Commission in 2016, a finance assistant, Hindia Ahmed, who had previously questioned missing funds, was allegedly told to take annual leave.
Prosecutors stated that Yasmin Sarwar transferred over £1.1 million of college money to her mother's account in Malaysia. She also allegedly purchased a £1.1 million house in Cardiff and made false claims for rent on other properties.
The college, which began accepting international students in 2009, became known as a top-performing institution. The trial, which is expected to last ten weeks, continues.