2 Indian men accused of fraudulently obtaining Dh220m in Dubai

2 Indian men accused of fraudulently obtaining Dh220m in Dubai

Mangalore Today News Network

Dubai, July 22, 2020:    Two Indian men have been accused of illegally obtaining Dh220 million from a Dubai company after establishing a fake oil refinery to lure shareholders.

 

The Dubai Court of First Instance heard on Monday that the 44-year-old Indian defendant, who is at large, worked for a Dubai company specialised in foreign investment activity like buying shares and bonds from international stock markets. He had the authority of trading with $30 million per day to buy shares and bonds from the international stock markets.

According to Dubai Public Prosecution, the defendant facilitated the crime of the 46-year-old Indian businessman and others for a Dh25 million bribe.

The defendant and others established a foreign company and registered it under the name of the second defendant’s father to buy a bankrupt company specialised in computer training and change its name and nature of activities to that of an oil refinery.

According to official records presented to the Dubai Court of First Instance, the defendants told the Indian stock market that they bought a German oil refinery and established it in India to get permission from the market to issue bonds by public offering of shareholders for the company.

The defendant handed a list of forged investor names of the public offering of $200 million company shares in order to sell the shares to other buyers, including a Dubai group, at double the price of the share.

Prosecution investigation revealed that the source of the refinery money was a loan from a bank in Portugal and that there was no capital or real shareholders.

Records revealed that they promoted the share certificates to different groups, including the group in Dubai, and that the 44-year-old defendant helped them to convince the group to buy the shares certificates after receiving bribes between 2007 and 2008.

They transferred the Dh220 million to accounts belonging to the defendants and four other companies.

The 44-year-old defendant caused Dh220 million loss to the Dubai group due to the scam.
The next hearing will be on August 20. The 46-year-old defendant is under police custody.

Courtesy:Gulf News