Fraudster held over investment scam

A fraudulent investor who cheated UAE nationals and expatriates across the country has been detained by police in Abu Dhabi, prosecutors said on Sunday.

The man, identified only as AAG, was arrested in a joint operation by the Abu Dhabi Public Prosecution and Abu Dhabi Police after luring residents to invest in a false company on the promise of 30-40% returns per month, emirates news agency Wam reported.

“The alleged investor has seized huge amounts of money from those persons and issued them dud cheques as guarantees,” said a source at the Public Prosecution Office, adding that a number of ‘assistants,’ had also been arrested.

Investigations were still at the preliminary stage, the source said, promising “severe punishments” against fake companies which “harm the national economy directly and tarnish the UAE stature.”

Residents should be wary of individuals or companies which seduce people through the media with the promise of high profits, the source continued, saying “They should make sure that the investor has got a licence to practice such activity so as to avoid being trapped into the web of conmen and protect their money.”

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Duped by Fraudster
Posted by zen on Monday 28 April 2008 at 14:23 UAE time


I cannot believe that people are so dim as to fall for a scam where the returns are 30%-40% a month. Surely they do know that there is a slow down world over, a recession in the US and inflation almost all around the world, including UAE. So how can they even imagine that in conditions like this a company can give such high returns!!!! This is as stupid as being conned vide email by fraudsters from Africa stating that they will transfer hundreds of thousands of dollars to you if you help them transfer their legitimate money out of the country. The duped person is either naive or greedy.

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