The Registration Authority (RA) of Abu Dhabi Global Market (ADGM) announced the conclusion of proceedings brought against Elia Investments Limited (Elia) and Babar Abbas, Elia’s sole shareholder and former director. Abbas was found to have engaged in two instances of fraudulent trading.
Regulatory Authority (RA) found two instances that include fraudulent trading and a false statement made by Abbas contrary to the Companies Regulations 2020 (CR 2020).
Elia’s exceeded ADGM’s limited license scope in two instances contrary to Commercial Licensing Regulations 2015.
As a result of the conclusion of the proceedings, the RA has imposed a fine of $100,000 on Abbas for fraudulent training and $25,000 for making a false statement to the Regulatory Authority.
RA has also taken the decision to disqualify Abbas from being a director of any ADGM company for a period of 15 years, the maximum period allowed.
Details of the proceedings revealed that Abbas used Elia for fraudulent trading resulting in significant losses to the victims, he solicited and obtained payments from victims in the form of ‘deposits’ required by Elia for proposed financing arrangements.
Elia failed to provide the promised financing while Abbas misappropriated most of the said ‘deposits’. The company was also found exceeding the scope of its license in two instances and was fined $30,000.
“The large fines and lengthy disqualification order imposed on Mr. Abbas for his fraudulent conduct sends a strong message that individuals who contravene ADGM’s commercial law will be held accountable for their misconduct,” said Dhaher bin Dhaher, CEO of Regulatory Authority (RA) at the financial freezone.
“To preserve the reputation of ADGM, we will relentlessly pursue significant penalties for individuals like Mr. Abbas and companies like Elia who commit serious violations of ADGM legislation.” Dhaher concluded.
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