x Abu Dhabi, UAEThursday 27 July 2017

Two accused in fax-based fraud case

Two employees at the Commercial Bank of Dubai appeared in court yesterday accused of embezzling Dh2.4m from a corporate account.

DUBAI // Two employees at the Commercial Bank of Dubai appeared in court yesterday accused of embezzling Dh2.4m from a corporate account. DN, a 39-year-old Sri Lankan, and RJ, a 27-year-old Pakistani, were charged with forging a transfer order for ?500,000 (Dh2.4m), and using it at the bank. Prosecutors said they took the money from a company account they managed and transferred it in euros to a third person's account. The third person remains at large.

The pair were alleged to have forged a faxed transfer order bearing the signature of the account-holder, an Indian businessman named Vidant Manicam. They then made the transfer, and the third person withdrew the cash from his account and handed them Dh250,000. The bank's executive manager, Masood al Majidi, explained to prosecutors that the bank offers a fast-track service for transfers placed by fax. "We accept faxes with unlimited transfer orders and validate it only with the signature, without the need of contacting the client for confirmation," he said.

Mr Manicam told prosecutors he received a call from the bank on April 26 telling him the transfer had been made. Having no knowledge of it, he investigated and filed a police case the next day. The court will reconvene next month. amustafa@thenational.ae