'More public awareness needed' about swindlers in UAE

Dubai/Abu Dhabi: Law enforcement officials have warned the public against falling prey to swindlers by investing their money in bogus investment portfolios after promising them astronomical profits.

The warning comes in the wake of the arrest of a 36-year-old Emirati who reportedly swindled 2,500 victims and siphoned off Dh400,000 million after promising them returns, of up to 30 per cent, for investing money in an unlicensed investment portfolio.

"Investigations revealed that the suspect, A.A.Q, cheated the victims as he didn't have a legally registered company and met potential investors at hotels and public places. None of the victims made serious enquiries into his legal status or the type of project they invested in. They were only running for quick returns.

"The situation clearly indicated that more awareness is required among the public about such scams. Abu Dhabi Police aim to curtail this crime and immunise society against being affected by such crimes," said Lieutenant Colonel Maktoum Ali Al Sharifi, Director of the Abu Dhabi Police Criminal Investigation Department.

An Abu Dhabi Judiciary Department official cautioned the public against investing their money with bogus investors who run unregistered investment portfolios which harm the UAE's economy directly and tarnishes its stature.

Major General Khamis Mattar Al Mazeina, Dubai Police's Deputy Commandant General, called on the public not to get carried away. He said the country does not have personal investment portfolios without licences and there are procedures by the Central Bank for such portfolios to safeguard the rights of investors and depositors.

Lieutenant Colonel Al Sharifi said the suspect, his three brothers and some brokers had been conning people out of money since February last year. Lieutenant Colonel Al Sharifi, who headed the investigating team, said A.A.Q promised to invest the victims' money in different industries.

"He deposited about Dh200,000 million which he netted in different banks and kept paying profits on time to avoid suspicion and to gain the trust of other potential investors... He convinced the victims that the legal procedures were complex and got away with giving about 5,000 guarantee cheques (most of which later bounced) and receipt vouchers. Brokers were given a 10 per cent commission for closing deals with new investors."

In the meantime, the police started investigations. They checked with the Central Bank whether he had a licence to manage investments. Following the understanding he held no such licence, all those involved, "his assistants" were taken into custody.

"Many educated people and those working in different government sectors fell prey due to a lack of awareness and eagerness to make a quick buck. The fact there was no office and all deals happened at hotels and in public places was in itself suspicious," Lieutenant Colonel Al Sharifi said.

Victim: 'Government must help'

Abu Sultan, a 39-year-old Emirati who lives in Ajman, told Gulf News: "I gave him Dh555,000 and he paid me back one month's profit (30 per cent)... I don't know what will happen next and how will we recover our money. The government should do something."

K.S, a 23-year-old Emarati, invested Dh200,000 for a 40 per cent profit. Once he started getting the profit he decided not to take the money but to re-invest. Apart from his total investment reaching Dh400,000, the man also turned into a broker and helped attract more unsuspecting investors.

A prominent businessman in Abu Dhabi told Gulf News: "The suspect claimed he was an investor in petroleum and gold. He said I had to keep the investment at least six months with him. If I withdrew the money within six months, he would cut 10 per cent from the principal amount as a penalty", he said. But returns would be given after one month. He revealed one of his friends in Abu Dhabi invested Dh200,000 and got over Dh400,000 after seven months. "But I felt he was fishy and I didn't invest with him."

- Staff Report