x Abu Dhabi, UAESaturday 22 July 2017

Brothers accused of $30m investment fraud

Alleged to have told potential investor that they owned steel company in the UK.

DUBAI // Two brothers are accused of tricking a man out of US$30 million (Dh110m) by convincing him to invest in a business they did not own.

The Emirati businessmen AH, 37, and GH, 35, allegedly defrauded JA, an Arab national, in February 2006, the Dubai Court of Misdemeanours was told last week.

Records show they told JA that they owned a steel company in the UK, and were inviting interested investors to buy shares.

The brothers showed JA contracts to back their alleged ownership of the company and he bought shares in the Oman branch of the company that were purportedly worth $30m.

JA said he transferred the money from his bank account to Barclays Bank in London.

He claimed he then contacted the defendants and they confirmed the sale.

But he said he later discovered that the men did not outright own the company and instead only owned a 30 per cent share.

He learnt that the company had been sold in 2010 to an Indian corporation for $464m and that he had no stake in the business.

AH and GH denied the accusation during police investigations. They said they had never done business with JA and that they had never received any money from him.

They both failed to show up for prosecution interviews.

The next hearing is on March 29.