x Abu Dhabi, UAEThursday 18 January 2018

Dubai Islamic Bank fraud sentences are records upheld on appeal

The sentences, along with a Dh3.6bn fine for six men convicted of embezzling nearly Dh2bn, are the longest jail terms handed out in a UAE fraud case to be upheld on appeal.

DUBAI // The longest jail terms handed out in a UAE fraud case appeal — 10 years each for six businessmen who embezzled more than Dh1.8 billion from Dubai Islamic Bank — were upheld by the Dubai Court of Appeals this morning.

The sentence, which also includes a Dh3.64bn fine, was first handed down by the Dubai Criminal Court of First Instance on April 26.

The six businessman – Briton CM, 48; RL, 50, who is also British; RU, 50, of Pakistan, a former DIB executive; O?M, 39, also of Pakistan; the Turkish businessman EN, 36; and the American Z?U – defrauded the bank in a case dating to 2008. All six had denied committing fraud, embezzlement, bribery and forgery in a case that dates to 2008.

RU, OM, and Z?U were also ordered to pay a combined fine of US$2 million (Dh7.3m) and to return a further $2m to DIB.

A?F, 58, the director of Plantation Holdings, was earlier acquitted of aiding and abetting and criminal complicity; the Appeals Court upheld his acquittal today.

Court records show that a Dubai Government Financial Audit Department investigation found that Dh1.84bn from the bank had been given to the Turkish firm CCH – the firm for which RL, CM and EN worked – in the form of credit allowances.

The investigating officer, Mohammed Mustafa Hussein, told prosecutors that CCH, which was run by EN and represented by CM and RL, illegally acquired the funds from the bank with the help of the remaining defendants.

The bank's chief executive, Abdullah Al Hamli, has testified that the men's illegal profiteering and forgery inflicted intentional losses on the Government and its interests.