Dh40 million scam surfaces in Dubai

Published Sunday, February 24, 2013

By Joseph George

A trading company in the UAE, which allegedly swindled goods worth several millions from various companies, has disappeared, claim its supposed victims.

The incident began to unravel a couple of months ago in December, and when affected companies went searching for their money, they were greeted with a message that read, “Happy Christmas,” pasted on the door of the shut office.

The trading company is said to have an office in a tower on Dubai’s Sheikh Zayed Road.

Apart from allegedly buying goods, mainly construction-related products, on credit it is said to have even sold a labour camp in Al Quoz to several different companies.

“We were shown a labour camp in Al Quoz with 200 workers. We were told that the camp is up for sale. We even paid the advance for the camp. Later, we realised that the camp was already sold to three or four other companies. There are no more workers residing in the camp now,” said a sales manager of one of the labour supply companies.

According to him, even the rent of the labour camp is pending for the last four months.

Another trader told 'Emirates 24|7' that he had supplied safety products for workers. “Our first consignment was for Dh45,000. Then, we issued the second consignment of goods worth Dh75,000. Both the cheques have bounced,” said the company’s owner.

“We did our enquiry and found that at least a dozen companies have been cheated,” he added. Other assumed victims say the trading company allegedly swindled its victims of up to Dh40 million overall.

Traders said the offices of the said firm were well decorated and that their salesperson looked very professional and always neatly dressed.

“All cheques were issued by a prominent bank and their credit history was pretty good, until now. We have lodged a complaint with the police and investigations are on,” said another trader who also claims tohave supplied construction materials worth Dh60,000.

Last week, 'Emirates24|7' had reported about a similar scam where a company with an office in Wafi Residence had duped traders of almost Dh20 million. It later emerged that the company was registered under the name of an Indian mason who was paid a monthly remuneration of Dh5,000 in exchange for the use of his passport.

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The page was last updated on: 14 January 2016 01:12