UAE | Crime
Court jails five finance executives
Two former chairmen and three board members conspired to defraud own companybreaching trust and misappropriating Dh 423 mllion . .
- Staff Report
- Published: 19:34 June 28, 2009
Abu Dhabi: The Abu Dhabi Court of First Instance has sentenced two former chairmen and three board members of the Islamic Finance Company to different jail terms for breach of trust and misusing Dh423 million.
A.H., a former chairman of Islamic Finance Company, was sentenced to three years imprisonment, while A.S. also a former chairman of the company, was meted a two-year jail term.
The three board members, identified only as W.H., E.S. and G.H., were each sentenced to spend a year in prison
All five were convicted for breach of trust, misusing and misappropriating shares and breaking the commercial law of the UAE.
Court records said A.H. had transferred money from the company's account to another company in which he owns the majority of shares.
He also abused the power of attorney granted to him by the board.
Moreover, A.H. also failed to write down minutes of the meetings of the company's board of directors, which is against the UAE commercial law.
The rest of the defendants were found guilty of misusing the authority given them when they granted A.H. an irrevocable power of attorney.
They also wrote off the loan given to the company in which A.H. and G.H. own majority shares. The Ministry of Economy in the UAE filed an official complaint before the Dubai Public Prosecution against the five defendants in addition to the company's CEO and financial auditor.
The court based its jail decision on clause number 404 from the punitive federal law which was amended to the law number 52 of 2006.
The court also based its decision on documents of the case and investigations, as it has confirmed that the defendants committed the crime.
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