x Abu Dhabi, UAEMonday 24 July 2017

Brothers cleared in US$30m investment scam

Emiratis were accused of claiming to own UK-based steel company when in fact they only owned 30 per cent of firm.

DUBAI // Two brothers have been cleared of scamming a man out of US$30 million after allegedly persuading him to invest in a company they did not own.

Dubai Court of Misdemeanours was told Emirati businessmen AH, 37, and GH, 35, were accused of defrauding JA, an Arab national, in February 2006 after allegedly convincing him they owned a successful steel company in the United Kingdom.

The brothers were alleged to have shown JA contracts to back their alleged ownership, after which he bought shares worth US$30 million.

JA said he transferred the money and received ownership of his shares. However, he was informed in 2010 the company had been sold to an Indian corporation for $464 million.

When JA contacted the defendants, he claimed they confirmed the sale to him.

He accused the brothers of deceiving him by telling him that they fully owned the steel company, when in reality they only owned 30 per cent.

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

They both failed to show up during prosecution investigations.

salamir@thenational.ae