The founders of one of Britain’s leading private sixth-form colleges allegedly diverted more than £5 million in parents’ tuition fees, a court has heard.
Yasmin Sarwar and her husband, Nadeem, are accused of treating Cardiff Sixth Form College as a personal bank account, using school funds to support what prosecutors described as an extravagant lifestyle.
Jurors were told that Mr Sarwar, 50, has admitted taking £5 million from the college during a period spanning February 2008 to October 2016.
Mrs Sarwar, 48, who was also a director, denies nine theft and fraud charges relating to the alleged disappearance of more than £5 million between 2008 and 2016.
The college, which operated as a registered charity, was established in 2004 after developing from a tutoring group for A-level pupils founded by Mrs Sarwar, who styled herself as a “tiger mum”.
It went on to gain a reputation as one of the UK’s strongest academic sixth-form institutions, reaching the top of the A-level league tables in 2010.
However, prosecutor Mark Cotter KC told Merthyr Tydfil Crown Court that the Sarwars allegedly used the college’s substantial income to purchase property and finance their lifestyle. Annual fees reportedly exceeded £30,000 for day pupils and £75,000 for boarders.
Mr Cotter said: “Yasmin Sarwar and her husband received considerable payments for their work at Cardiff Sixth Form College.
“The defendant and her then husband behaved as though the college’s money was their own personal reserve.”
“They repeatedly took funds to maintain their lavish way of life.”
Yasmin Sarwar, 48, is facing trial accused of taking more than £5 million from Cardiff Sixth Form College, which she established with her husband Nadeem, allegedly to support their lavish lifestyle.
Nadeem Sarwar outside court. He has admitted taking £5 million from Cardiff Sixth Form College between February 2008 and October 2016.
The alleged misuse of the college’s accounts was so extensive and persistent that its accountant was unable to prepare accurate audited statements, Mr Cotter told the jury.
The Sarwars later appointed Ragu Sivapalan, 41, as what prosecutors described as a less demanding accountant. The court heard he accepted information supplied by the couple “at face value” and used it to produce accounts containing false details.
According to the prosecution, the college began admitting fee-paying students from overseas in 2009 and built a successful international marketing operation.
Mr Cotter said the school subsequently earned international recognition and became one of the UK’s highest-performing sixth-form colleges.
The court also heard that the couple, who were originally from Malaysia, placed relatives in trustee positions on the college’s governing board.
Mr Cotter characterised Mrs Sarwar as “wilful, intelligent and manipulative”, alleging that she knowingly took part in fraudulent activity at the college.
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He further alleged that, after the couple’s relationship deteriorated, she created “sham companies” to redirect large sums away from her husband and transfer money overseas.
“Yasmin Sarwar was taking charity money that did not belong to her and then attempted to conceal what she had done,” he told the court.
The court heard the Sarwars set up a board of trustees including respected teacher John Price-Thomas, his wife Carol and later their son Huw.
Cardiff Sixth Form College has become one of the country’s top performing academic institutions and reached the top of the league tables for A-levels in 2010
But four of the other trustees were related to them, including Mr Sarwar’s sister, his cousins and Ms Sarwar’s sister.
Mr Cotter said ‘financial decisions were not being made by the trustees’ but were instead being made by the Sarwars, ‘including the setting of their very substantial salaries.’
Mr Cotter said trustees Mr and Mrs Price-Thomas were ‘well-meaning’ but did not ‘fully grasp their responsibilities’ or hold the Sarwars to account.
The court heard the Sarwars announced they wanted to convert the college into a private business in 2013 and would no longer need trustees.
Mr Price-Thomas, his wife and son resigned to allow for the change from charitable status – but the private business was never set up and new trustees were recruited.
Mr Cotter said the Sarwars asked one of the school mothers, Nabeela Sheik, to be a trustee even though they were told she had ‘poor spoken English and could not read or write well in English either.’
Mr Cotter said investigators discovered that Ms Sarwar had transferred over £1.1million of college money to her mother’s account in Malaysia, as well as buying a £1.1million house in Cardiff.
Accountant Sivapalan, of Penylan, Cardiff, has pleaded guilty to causing an auditor’s report on a company’s annual accounts to include misleading, false or deceptive information between January 2013 and July 2016.
Nadeem Sarwar has admitted stealing £5million from Cardiff Sixth Form College between February 19, 2008 and October 31, 2016.
Yasmin Sarwar, of Cyncoed, Cardiff, denies nine theft and fraud charges between 2008 and 2016 totalling more than £5million.
The college had more than 300 students on its register and attracted teenagers from all around the world, including Albania and China.
It was sold to multinational firm Dukes Education in 2018 and the charges against the Sarwars and Mr Sivapalan predate the sale.
The trial, due to last ten weeks, continues.
