Million-dirham con: Ajman trader cashes in on Iftar

Several creditors and wholesale traders have been left in the lurch after an Ajman-based foodstuffs trader absconded, leaving behind a trail of unpaid bills and bounced cheques.

Wardath Al Sabha Trading, located in Al Bustan area of Ajman, has been closed since August 2.

Operators of the trading firm have absconded after clearing the warehouse of all goods purchased on short term credit.

The remaining stock in the firm’s warehouse has been taken by some of the creditors and others are planning legal action to retrieve their money.

The mobile phones of people who ran the firm remain switched off and they have reportedly left the country. Some traders say their unpaid bills total Dh500,000.

A catering company supplier from Ras Al Khaimah has lost Dh300,000, a tissue company lost Dh85,000 and a disposable products manufacturer lost Dh5000, affected traders told Emirates 24|7. 

Many other creditors are regularly visiting the closed Ajman office of the trading company which started operations about six months ago, after taking over for one year running of a trading firm on the verge of closure.

They procured various products needed for Iftar parties on credit, sold them at steep discount and left the country before the cheques they issued started bouncing.

“They used to take groceries and trading firms on the verge of closure, appoint a fellow expatriate as manager, make him open a bank account ostensibly to transfer his monthly salary, takes goods on credit in the employee’s name and then abscond from the country, cheating suppliers and the company manager,” said a source familiar with the modus operandi.

A passport copy of the company manager, available with Emirates 24|7, shows that he hails from Kaipamangalam in Thrissur district of Kerala state in India.

“Several wholesalers had supplied goods for Ramadan Iftar parties. Initially they were very prompt in making payments and after gaining the suppliers’ confidence, they made large purchases in the last ten days,” said a salesman of Interplast, a company that supplied disposable glasses, plates and other items used for Iftar parties.

“The company was run by someone called Jasim Jalal but the real culprits are suspected to be operating from behind the scene,” said an Indian trader affected by the scam.

Razak V, an Indian trader, said: “I did not know these people, a person who worked in my company introduced these people to me. I lost Dh 5000 in food packaging items.”

“The new trader was on a visit visa. I made an agreement with them to run my company for one year. They issued cheques in the name of an employee,” said the original owner of the trading company who is also affected.

Three foodstuffs trading firms in Ajman have made formal complaints to the local police.

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