Dubai businessman arrested for Dh1.1 billion ponzi scheme

Dubai - The businessman was arrested on December 21.

The Dubai Police have referred seven complaints against an Indian businessman, who allegedly embezzled Dh1.1 billion from 7,000 people through a Ponzi scheme, to the public prosecution, according to police officials.
The man, who is accused of siphoning off the money through attractive schemes announced by his Dubai-based firm, Exential Group, was arrested on December 21 by the Dubai Police. He is out on bail now, but can't go out of the UAE, sources said.
Major Majed Al Suwaidi, acting director of Al Barsha police station, said the police are referring all complaints against the suspect to the authorities concerned. "Only 30 victims of the scheme have lodged complaints with Al Barsha Police Station. However, some of them failed to submit the documents to prove their investment in the scheme. Till now, we have referred seven cases to the public prosecution," he said.
Major Al Suwaidi said the police have no information about the total number of people who invested money in the company or the number of people who were cheated. "However, the Dubai Public Prosecution is investigating the case and every issues related to it will be investigated."
Exential Group enticed customers by offering profit of 100-150 per cent on their investment and the firm continued to give it, luring more investors. However, the firm stopped payment of profits all of a sudden and the suspect disappeared for months. The public prosecution has already started investigation and collecting details from the complainants.
Meanwhile, Director of Rashidiya Police Station Brigadier Saeed bin Suleiman, said that only one complaint has been registered against the company with the Rashidiya police. "The complainant said he lost Dh300,000 by investing in Exential Group's scheme.  We have forwarded the complaint to Al Barsha Police Station as the case comes under its jurisdiction because the company was located there," he said.
Sources said some of the victims did not complain against the firm because they already received their investment in the form of profits in six years. "The company had been working properly till it was closed down," sources said, adding that those who lodged complaints are new customers who did not receive profits to match their investment.
Most of the victims work in the aviation, oil and gas sectors. Many of them said their lives had been destroyed because they deposited most of their money. They said that they were enticed by the prospect of making huge profits and convinced their friends and family to invest in the company. However, the firm stopped paying profits, leaving them in the lurch.
- amira@khaleejtimes.com

• Dubai