Yesterday we learned that part of Apollo Global Management's $52.8 million settlement with the SEC, over charges the p.e. firm misled investors on fees, involved an ex-partner billing clients $200k for "personal entertainment...disguised as business expenses." Naturally, some of that entertainment involved sporting events, but also whisking Ali Rashid's lady friend off to the City of Lights, among other locales.
Rashid billed the funds for the expense of flying his girlfriend around the world, sources said...Referring to Rashid, the SEC said the former Apollo senior partner improperly charged personal items and services from January 2010 through June 2013. Rashid’s bills were footed by investors like the New York State pension fund — not by Apollo’s partners. Likely worth tens of millions of dollars, with a home on Park Avenue South, Rashid has repaid the money, sources said...“He [Rashid] was in Paris, and brought over his girlfriend and charged it to the fund,” a source said. Rashid was caught charging the fund for personal expenses twice, according to the SEC — which said Apollo took insufficient actions against the senior partners after the first occurrence. “He got caught once, and did the same thing again,” the source said. According to the SEC, the senior partner “submitted fabricated information to Apollo in an effort to conceal his conduct.” In October 2010, Rashid’s administrative assistant became suspicious of his expense reports and reported the issue to management.
What have we learned here today? Well 1. Don't charge your girlfriend's trips to investors but also 2. Stay on your assistant's good side! She/he's the one who knows all about your web of lies and bullshit and deceit.