In a dramatic turn of events, William C. Morton, founder of a small Florida hedge fund, is facing potential jail time for his alleged role in the disappearance of $533 million connected to Indian tech firm Think & Learn Pvt, now famously known as Byju’s.
According to a federal judge, Morton could be held in contempt of court if he fails to disclose the whereabouts of the substantial sum, which lenders are desperately trying to recover. The money was briefly under the custody of Morton’s hedge fund, Camshaft Capital Fund, before being transferred elsewhere, allegedly to an offshore trust associated with Byju’s founder Byju Raveendran’s brother, Riju Ravindran.
US Bankruptcy Judge John Dorsey, overseeing the case, expressed strong concern over Morton’s refusal to comply with a court order demanding details about the funds. Dorsey emphasized the gravity of the situation, indicating that civil confinement could be a potential consequence if Morton continues to defy legal directives.
Despite warnings from the judge, Morton reportedly left the country during a previous hearing, prompting further scrutiny from the court. Pieter Van Tol, one of Morton’s attorneys, confirmed that criminal lawyers have been engaged to represent Morton, underscoring the escalating legal tensions surrounding the case.
The missing $533 million has sparked a fierce battle between lenders owed $1.2 billion and Think & Learn, the educational technology startup founded by Byju Raveendran. The funds, which belong to a bankrupt shell company affiliated with Think & Learn, have become a focal point in the ongoing dispute between creditors and the tech giant.
While Morton may not be the central figure in the conflict, lenders accuse him of aiding Think & Learn in concealing the substantial amount, thereby obstructing efforts to recover debts. Benjamin Finestone, representing Byju’s Alpha Inc., highlighted suspicions that Morton may have been funded by undisclosed parties, further complicating the investigation.
The case underscores the complexities and high stakes involved in the financial dispute, with legal battles spanning across international borders. As the investigation unfolds, all eyes are on Morton’s next move and the potential repercussions he may face for his alleged involvement in the Byju’s crisis.
Sources By Agencies