Probe against Dubai businessman begins

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Dubai - The source declined to reveal any further details at this stage as the probe is ongoing.

By Marie Nammour

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Published: Thu 31 Oct 2019, 10:34 PM

Last updated: Fri 1 Nov 2019, 12:36 AM

A Dubai businessman, who was recently arrested here on suspicion of being involved in fraud schemes, has been referred to the public prosecution for investigation, Khaleej Times has learnt.
A source at the Dubai Public Prosecution revealed that the Pakistani-Canadian Dubai resident has been detained awaiting charges. "He will be investigated by the prosecution of the area of jurisdiction."
The source declined to reveal any further details at this stage as the probe is ongoing.
The businessman is suspected of running Ponzi schemes and 'bogus' investment portfolios involving 'fictitious' property projects. He is believed to have lured hundreds of people to invest their hard-earned savings with him.
This case is reminiscent of several similar cases that had been investigated by the Dubai authorities in the past years.
In such kinds of portfolios, fraudsters would trick gullible and unaware depositors by paying them monthly amounts of money. But that would not last long and they would default on paying at some point later. However, as it is documented in cases previously settled in Dubai Courts, the dividends would be cut from the investors' funds and would not be the result of serious investments.
In one of the most recent Ponzi schemes that were seen by the Dubai Courts, over 500 complaints had been filed against two Indian executives who were involved in a $200-million fraud.
Hundreds of investors were lured into currency trading (Forex market) with promises of high monthly profits.
The duo were sentenced to more than 500 years each in jail - one year for every criminal case.
Employees on low incomes are usually the most vulnerable to fall prey to such fraudsters, explains Emirati lawyer Abdulmoneim bin Suwaidan, owner of Bin Suwaidan Firm for Advocates and Legal Counsels. "They would easily buy fraudsters' promises and the bait would be the talk about high and quick revenues. Investors would indeed get paid for the first few months, unaware that the 'profit' is paid from their own money. By the time they notice that the whole investment is just a fraud, it would be too late."
To claim their investment deposits back, creditors have to file civil lawsuits in parallel with the criminal case.
In July 2010, 55-year-old Egyptian tycoon Nabil Al Boushi was jailed for duping rich investors of Dh736 million. He was referred to trial on charges of issuing dud cheques worth millions of dirhams.
In February 2011, 50-year-old Emirati billionaire Abed Al Boom, who owned a holding company investing in real estate, tourism and hospitality, was sentenced to 923 years in prison. He was accused of siphoning off more than Dh900 million collected from about 3,700 depositors.

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