Little hope for victims of post-dated cheque fraud

Dubai: A trade analyst has warned that there is limited recourse for those who are cheated through post-dated cheques that bounce.

Raju Menon, Managing Partner at Morison Menon Chartered Accountants, has asked people to be very careful when dealing in post-dated cheques.

"People should not engage in business through PDCs [post-dated cheques] until they are sure about the credibility of those they are dealing with. If it is a company, they should ensure that it is big, established and has been operating here for a long time."

One case of fraud that has come to the fore recently involves the owner of an electronics store in Deira. For 10 months, a group of traders associated with a market in Deira had regular business dealings with the electronics store owner. He always paid in post-dated cheques, as is the way of the market. But when one cheque after the other started bouncing from September 1 onwards, the traders became suspicious.

"Normally in our market, when someone leaves on vacation or closes down his shop for some reason, he lets the others know. That's the way we operate. When the cheques started bouncing, we visited his shop, only to see it closed. It turned out that he had left the UAE in August, and his helper had closed down the premises," one trader said.

The 13 traders alleged they were together cheated to the tune of Dh3.47 million. "I used to act as an intender [commissioning agent or broker] for him. I would import goods for him from China, and he would pay me in post-dated cheques, which were always honoured - until September 1," the trader said, adding that he personally lost Dh838,021.

The traders filed a complaint against the store owner with Dubai Police. They also went to New Delhi, India, trying to track him down. "Through our contacts in Delhi's Lajpat Rai Electronics Market, we came to know that after receiving the imported goods in Dubai he had sent them to a company in Delhi. We recognised our goods, which were on sale there. It was painful, as we had not been paid for the items," the trader said.

The traders have also filed a complaint against him in his home state of Haryana. "Under Indian law, if one Indian is cheated by another in a foreign country, then the victim can file a police complaint in India," said the trader. "We are trying to do all we can to recover our money. We are all small-time businessmen. The store owner has not only caused us financial losses but has also tortured us mentally."

Three complaints lodged

Dubai: A police official from Naif Police Station told Gulf News that there were three complaints lodged regarding this case, and the last complaint was for Dh500,000 approximately.

He said the victims filed the complaint after the suspect fled the country. The official said in such cases, they bring back the suspect by contacting the country to which the suspect has fled.

He said if there is an extradition treaty between the two countries to exchange suspects or wanted people, the country hands them over after an official letter. The official said such cases are not widespread, but people need to be cautious to avoid becoming victims.

Recently, Al Muraqqabat Police Station also held a meeting with representatives of banks and exchange houses to reduce the occurrence of financial crimes.

Lieutenant Colonel Dr Mohammad Naser Abdul Razzaq, Director of the Police Station, explained ways criminals chose the banks and customers.

- Alia Al Theeb, Staff Reporter