Edtech major’s hedge fund ally faces jail time over missing $533 million

The founder of a small Florida hedge fund could be jailed for refusing to reveal where Indian tech firm Think & Learn Pvt allegedly hid $533 million that lenders are trying to recover, according to a federal judge.

William C. Morton could be locked up for contempt of court if he can’t explain why he disobeyed a court order to provide details about the money, which was briefly placed with his hedge fund, Camshaft Capital Fund. US Bankruptcy Judge John Dorsey scheduled a hearing for later this month in Delaware to decide what should happen to the founder for defying a court order.

Morton has recently hired criminal lawyers to represent him, Pieter Van Tol, one of his attorneys, told Dorsey during a bankruptcy hearing Monday. Dorsey said he warned the hedge fund founder during a hearing last week that “it would be in his best interest” to attend today’s proceeding in Wilmington, Delaware. Instead, Morton left the country during the middle of last week’s hearing, Van Tol told Dorsey. “We advised Mr. Morton that he should produce the documents and he declined,” Van Tol said during Monday’s hearing.

Lenders accuse Morton of helping Indian tech firm Think & Learn hide $533 million from them.

CASH TRAIL

The cash belongs to a bankrupt shell company, Byju’s Alpha Inc, which is affiliated with Think & Learn and was taken over by the lenders after their loan defaulted. The $533 million was transferred to Morton’s hedge fund and then moved to an unnamed, offshore trust by Raveendran’s brother, Riju Ravindran, Byju’s Alpha lawyer Benjamin Finestone said last week.

Morton is not main player in the dispute, Finestone said in court. “There is obviously somebody else behind Mr. Morton who is funding him,” Finestone said.

Byju’s Alpha and the lenders have only targeted Morton and his hedge fund in order to find out where Ravindran ultimately parked the cash.

Lenders accuse Morton of helping Indian tech firm Think & Learn hide $533 million from them