Hearing in Dh1.3b fraud case adjourned to September 17

NEARLY 2,000 OF 3,700 PEOPLE SCAMMED BY 54 ACCUSED FILE CLAIMS OF UP TO DH310M

Fifty-four defendants, charged with fraud and money laundering, had their hearing adjourned to September 17, when defence witnesses will testify, the Abu Dhabi Criminal Court said on Tuesday.

The court heard testimonies from two prosecution witnesses — officers from the Abu Dhabi Criminal Investigation Department.

The men were arrested on charges of scamming up to 3,700 people of Dh1.3 billion.

Eight of the suspects were caught with the help of Interpol. Almost 2,000 people who were caught up in the billiondirham investment scam have come forward with financial claims of up to Dh310 million, prosecutors said.

A witness said the main defendant, who started his business in December last year, owned a car showroom and collected money from people for investment in return for a profit of 80 per cent within four to six months.

The UAE Central Bank said the defendant had no permit to collect money for investment.

The witness added that the police raided the showroom and seized copies of postdated cheques worth Dh1.6 billion, presented to investors, presumably to pay back their money and profits of 80 per cent.

Prosecutors said the scam goes in two parts — the scammers would buy secondhand vehicles with postdated cheques. They would then sell these cars to other victims but not deliver them. The scammers would then use the proceeds from the vehicle sales to pay back investors whose cheque payments were due. This was to avoid their scam being found out should the victims deposit the cheques for clearance.

Another witness said the main defendant bought printers worth Dh30 million and transferred Dh22 million to a company dealing in gold in Dubai. “The defendant also purchased camels worth Dh10 million,” the witness said.

Police began investigating last year after receiving more than 400 complaints in five days. Investigations showed the scammers would sell at least one car a day, which was then repurchased by the dealerships several times.

The defendants would buy expensive cars with the victims’ money. They also bought real estate and stocks.

Police seized Dh53 million in cash from gang members’ homes and car showrooms. Another Dh100 million in bank accounts was frozen. The authorities also seized 395 vehicles.