Former Istithmar employee sentenced to five years in jail

Dubai: A British fugitive has been jailed for five years and dismissed from his position as risk management director of Istithmar World after a court convicted him of misappropriating $1.3 million (Dh4.77 million).

Pronouncing Tuesday's verdict in absentia, Presiding Judge Al Saeed Mohammad Barghout also fined the 45-year-old Briton, K.T., $1.3 million and ordered him to repay the same amount to Istithmar World, the investment arm of Dubai World (DW).

According to the primary verdict, which is considered the toughest punishment in corruption cases so far, the accused will be deported after serving his imprisonment. The deportation applies after the accused is either arrested or turns himself in to serve the punishment.

The Dubai Court of First Instance also referred the Dh12 million civil compensation claim, lodged by Al Tamimi and Company law firm representing Istithmar, to the Dubai Civil Court.

Prosecutors accused the Briton of misappropriating more than $1.3 million by abusing his job and pocketing the money.

Records quoted one of DW's board members, an Emirati, testifying that the accused abused his power as the director of Istithmar's risk management department and pocketed the amount.

Failed to appear

Last July the defendant, who records identified as a runaway, failed to appear in court to be prosecuted. The Public Prosecution had charged K.T. with abusing his public job and misappropriating $1.3m from Istithmar.

DW's Emirati board member testified that the suspect was hired to prepare bylaws to prevent the staff from committing fraud, embezzlement and misappropriation of money.

"The management hired K.T. to set those bylaws against any risks which could hit any of DW's bodies or departments. In early 2008, we discovered that the accused signed a deal with a brokerage firm which deals with the horses industry. He didn't have the authority to sign such a deal and which cost DW nearly £2 million [Dh11.97 million]. Following our investigations, we discovered that he owed the brokerage firm £250,000. We also discovered that he transferred $1.3 million to an England-based company with which we didn't have any dealings and we also learnt that he owned 51 per cent of that company, which he managed," said the Emirati in his statement.

Prosecutors presented a copy of a report specifying how the accused executed his swindling, fraud and misappropriation crimes.