Hamed Abbasi, the co-founder and former CEO of Toronto-based payments scaleup Plooto, is facing charges of sexual assault, BetaKit has learned.
According to court documents obtained by BetaKit, the alleged assault took place in Toronto in Nov. 2023. Abbasi was arrested and charged days later with one count of sexual assault contrary to s. 271 of the Criminal Code of Canada. The Crown elected to proceed by indictment in June 2024, which means Abbasi could face up to 10 years in prison if convicted.
The complainant’s name and any other information that could be used to identify them is protected under a court-ordered publication ban.
Abbasi could face up to 10 years in prison if convicted. When reached for comment, Abbasi’s legal counsel denied the allegations.
A media spokesperson for the Ministry of the Attorney General of Ontario declined to comment on the case beyond confirming the above details.
These allegations have not yet been proven in court. When reached for comment, Stockwoods LLP partner Gerald Chan, who is representing Abbasi, denied these allegations. “Mr. Abbasi is innocent of these allegations,” Chan told BetaKit. “We trust the court process and look forward to the truth emerging during the course of the trial.”
Abbasi’s trial began Jan. 13 at the Ontario Court of Justice in Toronto, with Justice Jennifer Strasberg presiding. The proceedings included a display of video evidence that showed Abbasi and the complainant at a restaurant and hotel during the night of the alleged sexual assault. Proceedings were adjourned early yesterday afternoon when defence counsel fell ill. Lawyers were back in court briefly this morning, before the trial was adjourned again. It is now scheduled to resume Jan. 16.
Departure from Plooto
Plooto offers cash flow management and payments automation software to small and medium-sized businesses and their accounting firms.
Abbasi departed Plooto in March 2024 after nine years at the helm of the company. In the announcement of his departure, Plooto did not disclose why Abbasi left or comment on his departure.
Last October, upon announcing John McLane as the company’s new CEO, a Plooto spokesperson told BetaKit: “Hamed stepped down as CEO, with the board’s agreement, for personal reasons.” The spokesperson added that “Plooto is not in a position to elaborate on or further discuss the reasons for Hamed’s departure.”
A company spokesperson stated that “Plooto is not in a position to elaborate on or further discuss the reasons for Hamed’s departure.”
At that time, Abbasi told BetaKit that Plooto’s description was accurate, noting that after scaling Plooto to 130 employees and 10,000 customers as founding CEO, he decided that the time was right to cede leadership to someone new and take a break.
Abbasi claimed to BetaKit that Plooto’s board understood his decision and they reached an equitable agreement, noting that he no longer holds a board seat or works in an operational role with the company, but still attends board meetings and gets regular business updates. BetaKit was not aware of the charges against Abbasi at that time.
Speaking under condition of anonymity, multiple sources familiar with Plooto’s operations claimed to BetaKit in 2024 that Abbasi’s leadership approach during his time as CEO made it difficult for the company to hire and retain employees, particularly at the executive level.
When asked about this by BetaKit in Oct. 2024, a Plooto spokesperson declined to comment on Abbasi’s leadership to BetaKit, while Abbasi emphasized the strength of the leadership team Plooto built during his tenure and told BetaKit that he has personally sought guidance to become a better leader over the years.
A Plooto spokesperson declined to comment on Abbasi’s charges or additional questions concerning his departure from the company last year. The spokesperson instead referred BetaKit to the company’s March 2024 announcement release.
With files from Douglas Soltys. Feature image courtesy Plooto.