Court delays ruling after procedural error by prosecutors prompts investors pursuing a property development company to reinstate the charges.
Dh1.2bn fraud case stalls
DUBAI // Investors pursuing the property development company Dynasty Zarooni over a Dh1.2 billion fraud charge must wait six weeks for a crucial ruling because of a procedural error by prosecutors. Last month, 36 investors asked the Dubai Court of Appeal to reinstate the fraud charge, which had earlier been dismissed by public prosecutors. The investors claimed the investigation had been flawed.
Yesterday, the court was supposed to rule on their request, but instead adjourned the case until September 30 due to a failure by prosecutors to summon one of the accused, a Briton referred to as R G. The court also decided to review a civil claim filed by the investors on September 23. The case stretches back to 2009, when charges were filed against the company, its chief executive, K M, his Emirati business partner and managing director, H Z, and the British executive, R G. On May 30 the Dubai Court of Misdemeanours acquitted the men of setting up a bogus investment portfolio and defrauding investors.
The acquittal came after the court was presented documents showing the investors had received over Dh232 million in profits from their investments. In a separate civil case, also dismissed by the court, the investors claimed K M and his co-defendants had committed property fraud by selling the investors plots of land that did not exist. The court dismissed the case after reviewing a report by a property market expert called by the prosecution.
The investors have since filed a separate case against the expert, claiming he misconducted his evaluation.