In a startling revelation, Byju’s, one of India’s prominent tech companies, is facing allegations of hiding $533 million in an obscure hedge fund with a peculiar history, which once claimed its principal place of business was an IHOP pancake restaurant in Miami. Lenders pursuing the recovery of the funds have accused Byju’s of transferring over half a billion dollars to the Camshaft Capital Fund, an investment firm associated with William C. Morton, who, at the age of 23, founded the fund without any apparent formal training in investing. Furthermore, court documents reveal the registration of luxury cars, including a 2023 Ferrari Roma, a 2020 Lamborghini Huracán EVO, and a 2014 Rolls-Royce Wraith, in Morton’s name following the transfer.
These allegations represent the latest development in an increasingly public dispute between Byju’s, an India-based education technology firm, and the lenders who claim that the $533 million is collateral for a $1.2 billion loan. The ongoing conflict has seen both parties trading accusations, with lenders asserting that the loan is in default and Byju’s accusing the lenders of employing predatory tactics.
In their legal filings in Miami-Dade County court, the lenders have made a damning claim, alleging that “Byju’s has gone to great lengths to conceal the whereabouts of the borrower’s $533 million for the admitted purpose of hindering and delaying” the creditors.
The transfer of such a significant sum to Camshaft Capital Fund, led by William C. Morton, has raised eyebrows due to Morton’s relative lack of formal training or experience in the field of investment. The $533 million transaction, occurring last year, has now come under intense scrutiny, prompting questions about Byju’s decision-making process and due diligence.
Adding intrigue to the matter are the luxury automobiles registered in Morton’s name after the fund received the substantial infusion of funds. The presence of a 2023 Ferrari Roma, a 2020 Lamborghini Huracán EVO, and a 2014 Rolls-Royce Wraith, all associated with Morton, has fueled suspicions about the use and allocation of the $533 million. These revelations have further muddied the waters surrounding the dispute between Byju’s and the lenders.
This legal battle’s complexity and public nature have underscored the stakes involved for both parties. Byju’s, renowned for its educational technology offerings, faces the potential fallout of a default on a substantial loan, while the lenders are striving to reclaim the collateral and assert their rights.
The allegations of concealment, questionable fund management, and extravagant purchases will likely continue to be at the center of the dispute, raising significant questions about transparency, financial responsibility, and corporate governance. As the legal proceedings unfold, the outcome will be closely watched by the financial and tech sectors, as well as the wider business community, eager to see how this high-profile case is ultimately resolved.