Two Men Jailed For Defrauding 600 Investors Out Of Dh300 Million Three-Fourths Through A Fake Company

Dubai, the second-largest emirate in the UAE, is a modern city of skyscrapers, ports and beaches. Its multicultural lifestyle and large expatriate population have fostered an atmosphere of acceptance towards cultural differences.

Dubai has emerged as a major port and trade hub in the Middle East, having created several free zones that permit foreign investors to own and run businesses there. Furthermore, Dubai has become an acclaimed luxury tourist destination.

How it happened

Two men were jailed for defrauding 600 investors out of Dh300 million through a fake company. They were found guilty by the Dubai Misdemeanour Court after someone filed a complaint against them for fraudulently taking his money.

The men posed as managers of a real estate company and offered to invest in an overseas property. When the man agreed, he later discovered that his money had been taken from him; thus, he filed a police report against them both.

The men were charged with nine counts of defrauding people of their money, including three counts of wire fraud and one count each of conspiracy and fraudulently seizing assets. Their crimes were allegedly carried out through their fake company, which had offices around the UAE and was registered with multiple banks. Furthermore, they had connections to companies such as World Aqua Tech International and the European Land Development Agency. The accused were found guilty of inducing people to purchase shares in fake companies and spending their money on personal expenses like dining out or home improvement. Their victims included a family from Haiti which was devastated by last year's earthquake, as well as a father who invested $40,000 into an unprofitable business venture.

Who was involved

A Dubai judge has recently overturned a Dh300 million verdict against two men who were jailed for defrauding 600 investors of their money in an elaborate real estate scheme. Indian KM and Frenchman Francois de Dietrich were found guilty by jury trial of running the trifecta, which involved creating an elaborately designed portfolio designed to make money quickly. A receiver has been appointed to oversee the case which has so far recovered almost $300 million. Both men have denied all wrongdoing but their attorneys will be present during the court hearing to defend them.