Twenty businessmen are in prison for issuing dud cheques – because they were conned by a man who "sold" them fake letters of credit.

Dubai Police are investigating the Asian man and a number of collaborators on charges of issuing fake letters of credit against a commission of one per cent, paid either in cash or cheque.

The 20 victims were sent to prison for issuing dud cheques on the strength of his credit letters.

Lieutenant Colonel Adil Al Sharid, Director of Dubai Police Preventive Security Department (PSD), explained that the man has been conducting his affairs under a trade licence. He cons his victims by telling them that he could provide letters of credit for their business deals.

An Arab trader, who intended to deliver a consignment of rice from an Asian country into the UAE, gave the suspect a cheque for $1 million as commission against a letter of credit. This trader is now is serving a term in prison because the cheque bounced.

Most of the suspect's victims are small-time businessmen, who are looking for a quick return in one way or another.

Lt Col Al Sharid said that the suspect either forged the letters of credit, or conned banks abroad into providing him with the forms, cashing in on the ignorance of some traders of the procedures necessary for issuing letters of credit.

Lt Col Al Sharid described the man has as a professional criminal, who has been committing this crime for many years.