The founder of one of the UK’s leading private sixth-form colleges allegedly treated the institution’s finances as a personal source of wealth, a court has heard.
Yasmin Sarwar, 48, is accused of stealing and fraudulently obtaining more than £5 million from Cardiff Sixth Form College between 2008 and 2016. Prosecutors allege that money from the college was used to support a lavish lifestyle, purchase property and transfer funds overseas.
Her husband and former business partner, Nadeem Sarwar, 50, has already admitted stealing £5 million from the college during the same period.
Prosecutor Accuses Couple of Raiding School Accounts
Opening the case at Merthyr Tydfil Crown Court, prosecutor Mark Cotter KC told jurors that the Sarwars were well paid for their positions but nevertheless used college funds for their personal benefit.
He described the alleged misuse of the school’s finances as “relentless and widespread”, claiming it eventually created difficulties for the college’s accountant in preparing proper audited accounts.
According to the prosecution, the couple used money from the institution to finance property purchases and other expenses connected to their lifestyle.
College Grew Into a Major Academic Institution
Cardiff Sixth Form College was established in 2004 after developing from an A-level tutoring operation founded by Yasmin Sarwar.
The institution later expanded significantly, particularly after beginning to attract international fee-paying students in 2009. It gained a reputation for strong academic results and reached the top of the UK’s A-level league tables in 2010.
The college charged substantial fees, with day students paying more than £30,000 annually and boarding students paying more than £75,000.
By the time of the alleged offences, it had more than 300 students from countries including Albania and China.
Prosecutors Say Family Members Held Key Trustee Roles
The court heard that the Sarwars established a board of trustees that included respected teacher John Price-Thomas, his wife Carol and, later, their son Huw.
However, prosecutors alleged that several other trustees were members of the Sarwars’ family, including Nadeem Sarwar’s sister and cousins and Yasmin Sarwar’s sister.
Mr Cotter told the jury that important financial decisions were effectively controlled by the Sarwars rather than the trustees, including decisions concerning their own substantial remuneration.
The prosecution also argued that the Price-Thomas family members were well intentioned but did not fully understand their responsibilities or sufficiently challenge the couple.
Attempt to Change the College’s Structure
Jurors were told that the Sarwars announced in 2013 that they intended to turn the charitable college into a private company.
The move would have removed the need for trustees, prompting John and Carol Price-Thomas and their son to resign. However, the proposed private company was never established and another group of trustees was subsequently appointed.
Among those recruited was school mother Nabeela Sheik. The prosecution alleges the Sarwars knew she had limited spoken and written English skills when they asked her to take on the trustee role.
Millions Allegedly Moved Overseas
One of the most serious allegations concerns money transferred from the college to Malaysia.
The court heard that investigators identified a transfer of more than £1.1 million in college funds to an account belonging to Yasmin Sarwar’s mother in Malaysia.
The prosecution also alleges that a £1.1 million property in Cardiff was purchased using money connected to the college.
Mr Cotter further accused Yasmin Sarwar of establishing companies that he described as “sham companies”, allegedly in an attempt to move substantial amounts of money away from her husband and overseas after their relationship deteriorated.
Accountant Admits Role in False Reporting
The case also involves accountant Ragu Sivapalan, 41, from Penylan in Cardiff.
Sivapalan has pleaded guilty to causing an auditor’s report on a company’s annual accounts to contain misleading, false or deceptive information between January 2013 and July 2016.
Prosecutors allege that the Sarwars brought him in after concerns arose over the college’s financial reporting and described him as a less rigorous accountant who accepted information provided to him at face value.
Husband Has Already Admitted £5m Theft
Nadeem Sarwar has admitted stealing £5 million from Cardiff Sixth Form College between February 19, 2008 and October 31, 2016.
Yasmin Sarwar, of Cyncoed, Cardiff, denies nine charges of theft and fraud relating to more than £5 million allegedly taken between 2008 and 2016.
Mr Cotter described her as an intelligent and manipulative woman who was allegedly a willing participant in the financial wrongdoing.
She denies the allegations.
College Was Later Sold to Dukes Education
The alleged offences took place before Cardiff Sixth Form College was sold in 2018 to Dukes Education, a multinational education company.
The sale came after the period covered by the charges against the Sarwars and Sivapalan.
The trial is expected to last around ten weeks and is continuing at Merthyr Tydfil Crown Court.
