Wednesday 30 June 2010:
an investment scam with a dead person In Abu Dhabi
Abu Dhabi Police has nabbed recently a national suspected of running a new property investment scam in partnership with another dead national. The latter is a cover to defraud money out of his victims and to carry out his fraud which this time has taken an unusual and different dimension, as it has been stated by Brigadier Omeir Mohammad Al Miheiri, Deputy Director General of Policing Operations.
Brigadier Al Miheiri expects that the total number of depositors will go beyond 325 victims. They have been conned out of Dh102m. Following the arrest around 90 persons came forward to report that they were conned by the suspect. The claims range between Dh7m to Dh255,000, said Al Miheiri.
Colonel (Dr.) Rashid Mohammad Bu Rasheed, Head of Organized Crime Section at the Criminal Investigation Department said "The fake real estate company which is run by (F. M. Aa. Kh. Hh., 28), with only 5% of shares belongs to him and 95% belongs to the dead man, only has a bank balance of Dh900".
After regularization of procedures and charging the suspect with fraud to take possession of others money, working without proper licence, the Central Bank has been approached to inquire about the fake company and the suspect accounts, and to frozen all his accounts inside and outside the country.
In the same context Abu Dhabi Municipality, Abu Dhabi Security Exchange and Dubai Exchange have been contacted for necessary action.
The national suspect has used the identity of his partner who was murdered in January, as announced by the police, in order to fraud money out of the innocent victims. He has inserted the name of the murdered partner in investment contracts, guaranty cheques and issue vouchers, so as to defraud depositors' money. The murder case has not been settled yet as it is still under investigation.
"The suspect has notified them to report to the company in order to change investment contracts, guaranty cheques and issue vouchers to replace the old one with the new contracts, cheques and vouchers, and acknowledge receipt, provided that the old dates shall remain without change. He justifies this step by appearance of a new partner in the company. The new partner is the real owner and he has the right to run it fully, as he possesses 95% of the company capital. Thus he can deposit their prophets", added Bu Rasheed.
The whole business came to light after a lawyer, working in the UAE, has been tasked with some legal work by the suspect and he has been issued with a bad cheque for his charges. After growing suspicious about the company's activities, the lawyer reported the cast to the police, who discovered the scam.
Police authorities have investigated with 4 people, the suspect's father was one of them. Some of them were partners in the company. Then the suspect bought shares from other partners and changed the company's name. The victims' answers agreed that the company staff contacted those many times to replace investment contracts, guaranty cheques and issue vouchers with new ones. Some of them did not submit the old documents. They confirmed that the payment of their prophets, in accordance with the signed contracts, was suspended.
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