A couple who established a prominent private sixth-form college allegedly used its funds as a personal "piggy bank" to finance a luxurious lifestyle, a court has heard. Yasmin Sarwar, 48, and her husband Nadeem Sarwar, 50, are accused of misappropriating more than £5 million in school fees from Cardiff Sixth Form College, which they set up as a charity.
Prosecutors allege that the couple funded purchases of high-end jewelry, including a £30,000 Rolex watch, and grand pianos with money from the college. Details presented to the jury at Merthyr Tydfil Crown Court described numerous transfers from the college marked as 'expenses,' totaling tens of thousands of pounds. A £13,312 Kawai grand piano was reportedly delivered to the Sarwar family home, while a less expensive model was delivered to the college building.
Nadeem Sarwar has admitted to stealing £5 million from the college between February 2008 and October 2016. Yasmin Sarwar denies nine charges of theft and fraud totaling over £5 million during the same period.
The prosecution contends that Yasmin Sarwar was a "wilful, intelligent, and manipulative woman" who willingly participated in fraudulent activities. They further allege that after the couple's relationship deteriorated, she established sham companies to divert substantial sums of money abroad.
Cardiff Sixth Form College, which began admitting fee-paying international students in 2009, gained international recognition and became one of the country's top-performing institutions. The court heard that the couple, originally from Malaysia, appointed family members to the school's board of trustees. The prosecution claims that financial decisions, including the trustees' substantial salaries, were made by the Sarwars rather than the trustees.
Concerns about the college's finances reportedly surfaced after Gareth Collier joined as Head of Pastoral Services in September 2015. He allegedly became suspicious of the college's finances after being told by Nadeem Sarwar to "to take what he needed" from a bag of cash to cover expenses for an overseas trip. Collier also noted bank statements showing £25,000 payments for "Naz Agents Commission."
When confronted with these concerns, Yasmin Sarwar allegedly attempted to blame her husband for the financial discrepancies. The college later faced scrutiny when it was late submitting financial statements. During an inspection by the Charity Commission in 2016, Yasmin Sarwar reportedly instructed a finance assistant, Hindia Ahmed, to take leave. Ahmed had previously questioned the disappearance of £1.8 million from the college's bank accounts. Yasmin Sarwar allegedly later presented Ahmed with a non-disclosure agreement, referred to as a "gagging order."
Prosecutors also stated that Yasmin Sarwar transferred over £1.1 million of college money to her mother's account in Malaysia. Additionally, she is accused of purchasing a £1.1 million house in Cardiff, making false claims for rent on properties used by the college, and stealing funds for renovations.
Accountant Ragu Sivapalan has pleaded guilty to causing an auditor's report to contain misleading information. The trial, which is expected to last ten weeks, continues.