UAE | Crime
Assets of investor who conned clients in UAE to be auctioned
The properties of an Emirati of Syrian origin who duped scores of investors will be up for auction, the court ruled on Monday.
- By Samir Salama, Associate Editor
- Published: 23:33 June 23, 2008
Abu Dhabi: The properties of an Emirati of Syrian origin who duped scores of investors will be up for auction, the court ruled on Monday.
"The proceeds of 22 cars and other properties of A.A.Q. and his family will be deposited in a special account to settle debts of the investors," the Abu Dhabi Court of First Instance stated in its ruling.
Abu Dhabi public prosecutor has ordered the tracing and freezing of all the defendant's assets, as well as the members of his family and companies he owned and 70 other middlemen.
The defendant was accused of receiving funds from the public in exchange for a monthly return of up to 40 per cent, in violation of the prevailing laws by exceeding the scope of his licence.
The middlemen were charged for aiding and abetting the main defendant.
A.A.Q and his brothers remained behind bars while other defendants were bailed. Another hearing has been set for September 4 to look into the settlements.
The court has recently sentenced another Arab involved in these illegal financial activities to one year in jail followed by deportation.
The court has also ordered a ban on any business activity by the Arab investor, M.F.M.B, as well as a fine of Dh50,000.
Big profits
He was found guilty of managing a savings scheme, collecting savings from Emiratis and expatriates and offering profits of up to 70 per cent without a licence.
An Abu Dhabi Judiciary Department official cautioned the public against investing their money with bogus investors and said these savings funds are illegal and only funds managed by banks or investment firms are licensed.
"These illegal businesses are playing a confidence trick by offering their depositors monthly profits of up to 40 per cent to gain their confidence and attract more customers before the money disappear into thin air," the source said.
The Central Bank has reassured members of the Federal National Council of its strong stance against illegal investment companies, seeking to collect funds from the public.
"Any natural or legal person that collects funds from the public for investment and management without an appropriate licensing issued by the central bank is a federal crime punishable by law," Sultan Bin Nasser Al Suwaidi, governor of the central bank, told FNC's members in a statement last week.
"This usually occurs through tempting the public by unreasonably high monthly returns that does not conform to the prevailing rates yielded by normal financial activities," the governor said.
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