DUBAI � A British manager at Istithmar World, part of Dubai World, was sentenced on Tuesday to five years in jail and ordered to return $1.34 million to the plaintiff (Istithmar World) and pay a fine of $1.34 million.

The Court of First Instance also ordered his sacking from his post and his deportation after serving his jail term. The court ordered the civil case be referred to the relevant court.

The 45-year-old British manager was accused of embezzling $1.34 million from Istithmar World.

He was also charged with abusing his position as manager at the Risk Department till January 24 last year.

A member of the Board of Directors at Dubai World said in his statement to the Public Prosecution that the defendant was appointed manager of the Risk Department in Istithmar World to draw up internal regulations to control any embezzlement by any director or staff. According to the witness, the appointment of the British defendant was aimed at preventing any risks that Istithmar might face.

“However, we learnt in early 2008 that the defendant signed an agreement with a stock brokerage company to buy shares in a firm that deals in horses. It was odd as Istithmar did not have any business in that field. He made Istithmar pay £2 million ($3.26 million) while he was not empowered to sign such agreements,” the member of the board claimed.

Through investigation in his deals, Dubai World officials came to know that he owed £250,000 to the stock brokerage firm. “He transferred $1.3 million to a firm that did not have any link with Dubai World. Later on, it was known that he owned 51 per cent of stakes in that UK-based firm and that he was running it,” the same witness said.   

  mary@khaleejtimes.ae