Update: Safr said the Superior Court of the Virgin Islands dismissed the charges against Syed Gilani in this case in February 2020.
While Uber is attempting to heal its self-inflicted wounds from a series of controversies, one of Boston's home-grown ride-hailing startups will likely be facing questions from its drivers and riders after its CEO was arrested last week.
The Boston Globe reported that Syed Zain Gilani — the CEO of Safr, a startup that aims to provide safe transportation and job opportunities for women — was arrested as a fugitive from justice. The arrest is based on a warrant from the Virgin Islands, "where he is wanted for defrauding the government of more than $2 million," the newspaper said.
Safr launched in March in Boston, in part as a response to ongoing safety concerns about the number of sexual harassment and assault complaints from female drivers using Uber. It was originally called Chariot for Women.
The Globe reported that Gilani was arrested for allegedly running a scheme with two other men in the Virgin Islands where they made $2 million off grants from the Department of Homeland Security for federal identification card update work that was never performed.
Eoin Beirne, Giliani's attorney, said the arrest has nothing to do with Safr and that the CEO "denies any wrongdoing," adding that it stems from a contract dispute. He "is looking forward to the opportunity to challenge any such allegation," she said.
Gilani's arrest will not impact Safr's operations, Safr CMO Dana Córdova said in a statement provided to BostInno, adding that CFO Craig Gainsboro will take over day-to-day operations when Gilani is dealing with the matter.
"He is such a passionate believer in the Safr mission for which we are all very grateful," she added. "We fully support him, including any time he needs to deal with this legal matter."
Gilani has agreed to be transported to the Virgin Islands on July 7 to be arraigned in court.
