Bogus investment fund firm busted in Abu DhabiSeptember 25th, 2008 - 6:13 pm ICT by IANS
Abu Dhabi, Sep 25 (IANS) Two people were arrested in Abu Dhabi on charges of duping around 1,300 people by floating a bogus investment fund.The two men - a national of the United Arab Emirates (UAE) who is a representative of the company and a Sudanese who was the manager - were charged with duping the investors of 320 million dirhams ($87.1 million), the state-run Emirates News Agency (WAM) reported.
One of the victims told the police that he had given a cheque for 100,000 dirhams ($27,226) for the fund, which was claimed to be Islamic finance compliant, and was promised profits within 45 days.
“The company, however, did not deliver and he (the victim) was forced to report them to the authorities who launched an investigation into the activities of the company, which turned out to be operating without any license,” the report quoted Hamad Al Hanae’e of the anti-organised crime department as saying.
He said the UAE national representing the firm admitted that he received the amount from the victim and relayed it to the Sudanese man who claimed the money would be used to buy electronics in Dubai and export them to Africa.
Further investigations then led to the arrest of the two suspects and seizure of their properties.