Byju's Founder Allegedly Urged Ally To Flee US To Avoid Testifying Against Him

William R. Hailer, the businessman in question, revealed that Raveendran had sent him a plane ticket to Dubai just two days before he was scheduled to testify about him

Earlier this year, Judge Dorsey held another business associate of Byju’s in contempt of court for fleeing the US just before he was scheduled to testify

Source : PTI

Byju Raveendran, founder of Byju’s, allegedly tried to persuade a Nebraska businessman to leave the US to avoid testifying in federal court about questionable activities he witnessed while working with the controversial executive, the businessman testified during a court hearing on Thursday, according to a Bloomberg report.

William R. Hailer, the businessman in question, revealed that Raveendran had sent him a plane ticket to Dubai just two days before he was scheduled to testify about Raveendran’s efforts to regain control of parts of Byju's education empire that a court-appointed trustee had seized. A copy of the nearly $10,700 ticket was presented in court on Thursday.

Raveendran reaffirmed a job offer with a $500,000 salary, urging Hailer to fly to Dubai immediately and begin work, Hailer told US Bankruptcy Judge John T. Dorsey during a hearing in Wilmington, Delaware, states the report.

“He encouraged me not to testify,” Hailer alleged. “He said I should come to Dubai and he said the salary would start on day one.” 

Judge Dorsey noted that Hailer’s testimony warranted referring the allegations to federal prosecutors. Typically, this process involves the judge sending a letter to the US Department of Justice outlining the potential criminal activity, after which federal prosecutors decide whether to launch an investigation.

According to a court filing by Hailer, Raveendran has been attempting to regain control of his struggling edtech empire, which is under court supervision in both India, where the parent company is based, and the US, where some of its most valuable units are located.

Earlier this year, Judge Dorsey held another business associate of Byju’s in contempt of court for fleeing the US just before he was scheduled to testify.

According to a filing with the US Bankruptcy Court in Delaware, Raveendran allegedly enlisted Hailer, a former political consultant, to help buy out US creditors owed over $1.2 billion from a loan. The goal was to exchange that debt for ownership of Epic!, an education software company. However, the plan ultimately failed.

“Over the past several months, I have been used as a pawn in Byju’s manipulation of the law,” Hailer wrote in testimony filed earlier this week. He is set to testify today in federal court on behalf of a trustee, who plans to sell Epic! to raise funds for Byju’s creditors, including US lenders, as per the report.

Raveendran has denied any wrongdoing in previous responses to lender allegations, arguing that his actions were a justified response to the aggressive tactics used by creditors who specialise in extracting money from distressed companies.