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Retrial ordered in DIB bogus shares case

DUBAI — In an unexpected twist to the case of the Dubai Islamic Bank’s bogus shares, the Dubai Court of Appeal shocked the defence and suspects yesterday when it decided to reverse its verdict and referred the case back for pleading on the basis of technical expertise.

The court assigned a three-member committee from the Financial Auditing Department in the Ruler’s Court, who are well experienced in the field of Stock Market and Financial Securities, to review the documents of the case and observe the dealings on the Dubai Islamic Bank Shares during August 27 and 28 last year between the two suspects (1st & 4th) through the brokerage office.

The committee is assigned to trace the operations to determine its integrity according to legal market regulations.

The court also specified the amount of Dh100,000 as temporary bail for the charges and fees of the committee, and ordered it to be put in the court’s treasury.

However, the court decided to adjourn the case until the 10th of July, when the committee will be able to submit its report. The defence praised the decision of the court and said it was a positive step for the benefit of their clients, indicating that the evidences submitted by the Prosecution and the Dubai Securities Market are insufficient, and that there are doubts about its authenticity.

On the other hand, the Dubai Court of Appeal postponed the first hearing for the adulterated foodstuff case, in accordance with the demands of the Defence Committee, as they desire to review the case and prepare it by presenting new documents. The hearing is postponed to June 12.

According to the case history, manipulations by the two accused resulted in the stock price of the bank going up in an unprecedented manner.

The price of DIB shares soared after rumours spread that the bank was planning to increase its capital manifold. In order to make this happen, the two accused, Khaled bin Megren and Zayed Rashed, created false demand for the shares, 90 per cent of which turned out to be bogus. Bogus applications worth Dh8 billion and 80 million were manipulated by the duo for this.

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