Dubai court fines, jails and orders deportation of ex-manager for embezzling Dh2.1 million

Dubai: A former accounts manager has been ordered to pay Dh2.3 million to his employer after being convicted of embezzling more than Dh2.1 million in customer payments entrusted to him during his employment.

The Dubai Court of First Instance awarded the company Dh2.3 million in compensation for material and moral damages, together with 5 per cent annual interest until full payment is made. The defendant was also ordered to bear court costs and pay Dh2,000 in legal fees.

The ruling came after the employee was convicted in a criminal case and sentenced to three months in jail, fined Dh2,107,250 — equivalent to the amount embezzled — and ordered to be deported from the UAE. The Court of Appeal and Court of Cassation upheld the conviction, before the Civil Court in Dubai ordered him to compensate his former employer for the losses resulting from the offence.

Discrepancies uncovered

According to court records, the case began after the manager of a Dubai-based freight services company discovered discrepancies in the firm's financial collections and filed a complaint with Al Muraqqabat Police Station in September 2023.

An internal investigation found that the employee, who served as an accounts manager, had been collecting payments from customers but either depositing lower amounts into the company's accounts or failing to deposit the funds altogether.

Authorities determined that the total amount misappropriated reached Dh2,107,250.

Conviction upheld

Public prosecutors charged the employee with embezzlement, alleging that he abused his position of trust by unlawfully appropriating company funds received from customers on behalf of his employer.

In November 2023, the Dubai Criminal Court convicted him and imposed a three-month prison sentence, a fine equal to the amount involved in the offence, and deportation from the country after completion of the sentence.

The conviction was subsequently upheld by both the appellate and cassation courts, making the judgment final and binding.

Civil compensation awarded

The company later filed a civil lawsuit seeking compensation for the losses it suffered as a result of the embezzlement.

In its ruling, the court held that the criminal conviction had conclusively established the employee's liability and that the company had sustained direct financial losses through the unlawful appropriation of its funds.

The court also took into account the wider impact of the offence, including the company's inability to use and invest the missing funds, damage to its business interests and reputation, and expenses incurred in pursuing both the criminal and civil proceedings.

Based on these findings, the court awarded the company Dh2.3 million in compensation for material and moral damages, together with 5 per cent annual interest until full payment is made, in addition to court costs and legal expenses.