'Thousands lose life savings' UAE fraud trial hears

BOGUS INVESTMENTS: Dubai's Attorney General ordered Abid Al-Boom's arrest in July. (Getty Images)

The trial of Emirati businessman Abid Al-Boom has heard evidence that he owes depositors 847 million dirhams ($231 million) while assets seized covered only 15 percent of the amount, the UAE daily The National reported on Wednesday.

Thousands of investors, including many on fixed low incomes, say they have lost their life savings in a bogus multi-million dirham investment portfolio run by the Al-Boom, prosecutors said.

After receiving numerous complaints from depositors, Dubai Attorney General, Essam Eisa Humaidan, in July ordered al Boom’s arrest along with eight others, including an African business partner, an Emirati business partner and Al-Boom’s brother Khalid, the paper added.

“We have registered to date complaints from 3,458 depositors and counting. My office has been busy answering calls from depositors and we have referred the case to the Dubai Rulers Court where auditors will examine al Boom’s accounts to determine where the money has gone,” the paper quoted Yousef Foulaz, the chief prosecutor for Deira First District as saying.

"The final amount is likely to go up as we continue to receive and register more complaints."

Mr Humaidan had earlier ordered the closure of the offices of Al Boom Holding LLC, and Abid Al Boom Management and Development Properties, the suspension of trading in shares owned by the accused and the freezing of all assets belonging to them, including any real estate and bank accounts held by the accused, in order to secure investors’ rights, the paper said.

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READERS' COMMENTS

Another confidence building incident
Posted by sid, Sharjah on Thursday 28 August 2008 at 13:24 UAE time


Another confidence building incident in the UAE. Very unfortunate indeed, for the investors, and for all of us who do business here indeed.

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