ADGM
The ADGM headquarters. Elia had a limited ADGM licence that allowed it to conduct the activities of a special purpose vehicle only. Image Credit: ADGM

Abu Dhabi Global Market’s Registration Authority has imposed fines totalling $155,000 on Babar Abbas, the sole shareholder and former director of Elia Investments Ltd, for fraudulent trading and making false statements.

Abbas has also been barred from being a director of any ADGM company for 15 years.

Abbas was found to have engaged in two instances of fraudulent trading contrary to the Companies Regulations 2020 as well as making a false statement to the authority related to Elia.

As a result, the authority imposed a fine of $100,000 on Abbas for his fraudulent trading and $25,000 for making a false statement.

The proceedings found that Abbas used Elia as a vehicle for fraudulent trading resulting in significant losses to the victims. He solicited and obtained payments from victims in the form of “deposits” required by Elia for proposed financing arrangements. Elia failed to provide the financing that it promised while Abbas misappropriated most of the said “deposits”.

Elia had a limited ADGM licence that allowed it to conduct the activities of a special purpose vehicle only and has now expired. Elia was found to have exceeded the scope of its licence in two instances and was fined $30,000.