Dubai: Dubai Police have arrested a gang of four men who duped a company after taking delivery of goods worth Dh1.4 million, police said on Sunday.

Brigadier Salah Bu Osaiba, director of the economic crimes combating department of Dubai Police, said that they received a call from a company in Dubai that they had been conned by a gang.

“A suspect posed as businessman and asked the company to supply iron against a cheque. He got the goods and gave Dh1.4 million cheque, but when the owner of the commercial company tried to withdraw the money, he discovered that the cheque was fake,” Brigadier Bu Osaiba said.

The fraudster furnished a fake bank insurance letter along with the fake cheque to convince the company to agree to the deal against receipt of a post-dated cheque.

Dubai Police launched a manhunt and they identified the suspect, who was subsequently arrested in a sting in Dubai. “We found the fake bank insurance letter with him and he confessed to committing the crime,” Brigadier Bu Osaiba said said.

The suspects insisted on delivery of goods on a Thursday knowing that banks would be closed on Friday and it would take two days to clear a cheque, the officer said.

Brigadier Bu Osaiba said the suspect confessed that there were others who had helped him in the crime and they too were tracked down.

“They sold the iron on the same day to another merchant for a price below the market rate,” Brigadier Bu Osaiba said.

The four suspects have been referred to Dubai Public Prosecution on charges of fraud and using fake documents.

Dubai Police warned companies to be vigilant especially when agreeing to supply goods against post-dated cheques.

“This is an old style of fraud... businessman or a company accepts payment by cheque and delivers the goods. Soon after, the fraudsters disappear and sell the goods to other merchants,” Brigadier Bu Osaiba said. “Companies and merchants must enquire about the new businessmen they meet to make sure they have a real company before making deals with them and losing their goods.”