Binhendi embezzlement case: out of court settlement

The president and owner of BinHendi Enterprises, one of the largest Dubai-based fashion conglomerates, had a Dh27-million embezzlement case dropped following an out-of-court settlement with 29 plaintiffs, according to court records.

Fraud charges were originally lodged on February 26, 2009 by 76 people against the Emirati owner, M.B., 61, and his administrative manager, M.Z., 33. Both suspects were charged in the Dubai Court of Misdemeanors for breach of trust, and faced a maximum sentence of three years. The two suspects incurred losses of over Dh46 million in foreign exchange trading and real estate investments using their clients' money, court records show.

Out of the 74 plaintiffs, 41 were repaid Dh11.2 million. Dh3.2 million was paid to six others. However, the remaining plaintiffs received no reimbursements.

A probe by the Dubai Government's Financial Audit Department which was presented as evidence in court showed that Dh22.3 million was transferred from the remittance centre's account to BinHendi Properties for purchase of real estate. Dh10 million was returned days later.

Records were presented in court supporting public prosecutors' claims that irregularities appeared in the money exchange company since M.Z.'s employment.

A civil claim was filed by one Ethiopian and six Algerians and was ordered to be reviewed by the Dubai Civil Court.

Drugs possession: suspects plead innocence

Two suspects pleaded not guilty on Wednesday of possessing about six grams of heroin.

Prosecutors accused C.N., 33, and E.M., 25, of holding five transparent plastic bags containing heroin with the intent of selling it. The suspects, both Nigerian, denied the charges and requested a copy of their case file. Prosecution records showed that they were arrested in the Naif area in August last year. A.L., the officer, who arrested them, told prosecutors he was tipped off that C.N. was in possession of drugs and was expecting another packet from an unknown person.

When the policeman questioned C.N. on the scene, he said he and his friend E.M. were holding drugs for acquaintances in Nigeria, and were awaiting further instructions from them, court records show.

Police asked C.N. to call EM to his house. He was arrested when he arrived. E.M. corroborated C.N.'s statement and accompanied the police to his house.

The drugs were hidden under the suspect's chair, inside a DVD player, and inside a plastic bag, the police witness said. The forensic report showed the plastic bags contained heroin. Presiding judge Fahmi Mounir Fahmi requested a copy of the case to be given to the suspects from the public prosecutor's office. The next hearing is on February 16.

Porn peddlers:  two get jail

Two jobless Bangladeshi men were sentenced to two months in jail for selling pirated and pornographic movies.

The verdict was pronounced on Wednesday in the Dubai Court of Misdemeanours and the judge ordered the suspects to be deported after serving their sentences. The two suspects, F.A. and M.M., were charged with possession and intent to sell 540 pirated CDs containing different types of films, as well as 85 CDs containing pornographic material.