Showing posts with label Fraud Dubai. Show all posts
Showing posts with label Fraud Dubai. Show all posts

Saturday, 19 December 2009

Dubai Fraud Trial - Lawyer asked the court to subpoena Hussein Sajwani, the owner of Damac Properties

originaL source The National
DUBAI // Defence lawyers in the Sama Dubai fraud trial tried to use the fallout from the recent restructuring of Dubai World to make their case to the Appeals Court yesterday that their client should not be tried as a public official.

AM, 42, an Emirati and former senior executive at Sama Dubai, was acquitted of charges of breach of duty in July.

Last month the public prosecution asked that he be retried, saying his acquittal came because he had been tried as a private employee.

The prosecutor, Abdel Rahman al Memari, told the court that since Sama Dubai was owned by Dubai Holdings – owned by Sheikh Mohammed bin Rashid, the Ruler of Dubai and Vice President of the UAE – AM should instead have been tried as a public official.

In that case, Mr al Memari said, AM would have been legally required to declare commissions he received, including five apartments valued at Dh2.7 million (US$735,000), and Dh200,000 in cash.

If accepted, that claim would have significant repercussions for a number of the fraud cases currently working their way through the Dubai courts, as many of the defendants could similarly be considered to be public officials.

However, in court, the defence pointed out that since Dubai World’s restructuring was announced last month, officials had stressed the arm’s-length relationship between the Government and some of the emirate’s biggest companies.

For the defence, Ali al Shamsi reminded the three Appeals Court judges of government statements saying it would not guarantee the debts of a conglomerate owned by Sheikh Mohammed.

“The recent press statements issued by government officials about the company owned by the Ruler of Dubai are a clear indication that these companies are not government-owned entities,” said Mr al Shamsi.

He referred to a television interview given by Abdel Rahman al Saleh, the director general of the Dubai Department of Finance, in which Mr al Saleh said: “Creditors need to take part of the responsibility for their decision to lend to the companies. They think Dubai World is part of the Government, which is not correct.”

Mr al Shamsi told the court that Dubai Holdings, like Dubai World, was not owned by the Dubai Government.

Its subsidiaries were registered as limited liability companies, he said, meaning that AM could not be charged as a public official.

Meanwhile, Saeed al Ghailani, who is representing a Syrian Damac property development manager, AH, 32, in the same trial, asked the court to subpoena Hussein Sajwani, the owner and chief executive of Damac Properties, to be cross-examined.

AH is accused of being complicit in the alleged bribes of the Sama Dubai employees as well as accepting Dh650,000.

Mr al Ghailani said his client acted according to the instructions of the owner of the company, Mr Sajwani.

The trial was adjourned until January.




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Wednesday, 2 December 2009

Project Maritim Hotel Dubai Land - DUBAI 1000 Hotel Fund - Arrest Warrant against Georg Recker

DUBAI 1000 Hotel Fund - Warrant of Arrest against Georg Recker

Based on research by German newspaper "Westfälischen Allgemeine", since a couple of weeks a warrant of arrest has been issued by Dortmund Court of Justice (Germany) against German Georg Recker (36), initiator of "Dubai 1000 Hotel Fund".

For Recker an international quest is conducted, assuming that he is staying since longer time now in Dubai. Recker is under suspect of embezzling from German investors an amount of approx. 25 Million Euros.
State Attorney Dr. Ina Holznagel from Dortmund Public Prosecution did reject on request any information since when the warrant is already issued. But she confirmed that prosecution against Gerog Recker is ongoing since early 2008.

Meanwhile prosecutors have been able to freeze five bank accounts in Germany with deposits in the amount of roughly 1Million Euros. A drip on hot stone with view to approx.
25 Million Euros collected
by Recker from more than 900 investors.

Up till now, just 2 claimants took seizing action against these accounts: one investor and one former employee. "For us it will always remain indistinct, how lame especially German investors are acting if they face fraud and embezzlement with regards to their own moneys," says Martin Kraeter, Principal of KLP Group Emirates.

Law firm KWAG from Germany represents just 50 out of 900 investors with claims of approx. 1Million Euros. They try to seize blocked funds now, as long as there are remaining funds on the accounts.
All other investors seem to preferably follow Recker’s lawyer Mr. Eckehart Heberlein from Munich: Heberlein seriously states frequently that the investment object of the fund - a MARITIM Hotel in Dubai Land - will soon be built and that there is constant progress on the construction site . . .

Recker‘s "Group of Companies" in Hamm (Germany) already has been restructured in October 2009: New CEO of "Travel-Dubai AG" is now since 22.10.2009 Mr. Ben Neuendorf (45). He is seen as Recker’s right-hand - by this prosecution is also running against him.
Recker himself is not reachable, of course. Remaining employees in his „Enterprise Group“ back in Germany are advised not to give any kind of relevant information.
Source (in German language)

Saturday, 14 November 2009

Dubai developers Cirrus and Kaizen disappear - Investors worried

original source Construction Week Online Dubai, 14 November 2009

Confusion has broken out over the whereabouts of international real estate firms Cirrus Developments and Kaizen Developments.

Both developers are responsible for hundreds of millions of dollars worth of developments in Dubai and across the region, including Cirrus’ Aquarius Gate in the Waterfront area, and Kaizen’s Equinox Residences at Palm Jebel Ali.
Websites for the companies are no longer active, while phone numbers listed on their brochures have not connected.
Cirrus Developments had been developing Celestial Heights – a mixed-use project of three towers, in the Downtown Jebel Ali master development, but the project is now being looked after by a firm called Catalyst Project Consultants, Construction Week has learned.

“Cirrus was part of phase one of Celestial Heights, then the owners appointed Catalyst,” Catalyst Project Consultants’ director Israr Ahmed told CW.

“Cirrus have downsized and moved offices, but they handed over all work related to the project over a two month period.”

Ahmed also said that Catalyst was “not at all” related to Cirrus Developments but it did have links to Kaizen Developments whose logo featured on early Celestial Heights marketing materials.

The last number he had for Cirrus could not be connected.

Dubai’s Real Estate Regulatory Agency (Rera) confirmed to CW that a developer by the name of Kaizen One Investment Limited was an approved developer, but the phone number it had registered for Kaizen now belongs to a general trading company.

Significantly, the registered website that Rera had for Kaizen One Investment Limited was www.cirrusdevelopments.com, which is now defunct.

Construction Week eventually managed to reach Cirrus Developments’ brokerage number where a receptionist said: “Due to the [financial] crisis, we have suspended the brokerage”, but insisted that despite not appearing on Rera’s list of approved developers, the development side of the company was still in operation.

Both public relations firms which represented Kaizen and Cirrus in the past confirmed that they were no longer their clients.

Kaizen Developments is unreachable.

Do you work for Kaizen or Cirrus? Have you invested in their projects or have you worked on their projects? Please contact constructionweek online



Friday, 6 November 2009

Dubai - More than a half million bounced cheques between January and May 2009


Bounced cheques are regarded legally as fraud, a criminal offence punishable by jail in Dubai and the UAE.

With more than a half-million cheques bounced between January and May of this year alone, the cases have been putting an increasing strain on the legal system.



But now the hard walls of debtors’ prison are beginning to crack.

No longer will home buyers in Dubai who cancel postdated cheques because of a developer’s missed deadlines or broken promises automatically face jail.

Instead of being investigated by police or prosecuted, delinquent tenants and homeowners will be referred to a new judicial committee that will make a binding judgment on whether they should be held to payment. It will also deal with developers who run into financial difficulties and cannot pay their investors.
read the full aricle in The National original source

Dubai Prosecutors will hunt former senior executive of Istithmar World

Dubai, 05 November 2009
An Interpol Red Notice could be issued for the arrest and possible extradition of Chris Turner, who was sentenced in absentia to five years in jail for embezzling AED4.9 million ($1.3m), UAE daily The National reported on Thursday.

The former risk assessment manager for the investment arm of Dubai World was also ordered by Dubai Criminal Court to pay $2.7m in fines and restitution.

Turner, speaking to newswire Zawya Dow Jones from a location outside the UAE, said: "I'm innocent of the charges and I'm not in the country. I'm reviewing my legal options."

"This is a matter for the appropriate authorities," said a spokesman at Istithmar World in an emailed statement to the newswire.

But prosecutors in the UAE said they would hunt for him.

source Arabian Business here read the full article



Saturday, 31 October 2009

Dubai Properties Chairman arrested on suspection of embezzlement

source Bloomberg October 30 2009


Oct. 30 (Bloomberg) -- Hashim Al Dabal, chairman of Dubai Properties LLC has been arrested on suspicion of embezzlement at the state-owned company that’s in merger talks with Emaar Properties PJSC, the emirate’s attorney general said.

“Mr. Al Dabal is accused of abusing his position and earning millions in illegal profit,” Attorney General Essam Essa al-Humaidan said in a phone interview today. “We are questioning him almost daily and Mr. Al Dabal indicated he is ready to answer questions without having a lawyer present.”

more....



Wednesday, 26 August 2009

Dubai - Herve Jaubert - The Spy who came from the sea

source The National

If Hervé Jaubert is to be believed, the one thing he learnt well during 15 years spying for France’s intelligence service was how to disappear.







So in May 2008, facing accusations in Dubai of fraud and embezzlement worth Dh14 million (US$3.8m), this country’s most wanted Frenchman appears to have done just that. He vanished.

He tells a tale befitting a spy thriller, much of it difficult to confirm as fact, but no less fantastic for a man convicted in absentia for embezzlement, and named in a separate case in France.

It was on a Friday morning during dhuhr prayers, under a scorching sun in Fujairah, that the former submarine builder for Dubai World claims he boarded a rubber dinghy. He charted a six-hour route to a French accomplice on a waiting sailboat, and then fled to India.

For the nearest patrol craft, 5km away, giving chase would have been impossible, according to Jaubert – even if his dinghy had been sighted. A master scuba diver, he said he had swum underwater for more than an hour to disable the fuel line to the boat previous night.

In the days before he executed the plan, he claims, he scoped the country’s borders using Google Maps for a perfect escape route, then surveyed the area on the ground. To elude the authorities, he said, he used aliases to book hotels and even to buy a sail boat. He disguised himself as a bespectacled tourist, a bearded Emirati man in a dishdasha and even, he says, as a local woman by wearing a padded abaya misted with Arabic perfume.

“When you wear an abaya, you become a ghost. Nobody talks to you. Nobody looks at you. Not even a police officer would talk to you.”

Jaubert is not shy about the fact he is trying to profit from this story. His book, Escape from Dubai, will be released in October.

But to UAE authorities, he is nothing more than a swindler.

On April 15, Jaubert was tried in absentia and convicted of illegally acquiring Dh14.12m by abusing his position with Exomos, a subsidiary of Dubai World, according to court records. He was sentenced to five years in prison but denies the charges against him.

He also denies being the Hervé Jaubert who, according to a Canadian Broadcasting Corporation report, was sentenced to two years in prison in France for a 1994 plot to intimidate a company official over a water supply deal.

“I know the story but it’s a business story; it’s my name so it sounds like me but I was not an army captain. I had nothing to do with these people, it’s a fabricated story. I can e-mail you a certificate from the French ministry of justice showing that I have no criminal record.”

In the UAE case, two witnesses, an Egyptian and an American, both directly linked to the investigation, testified in writing against Jaubert.

The first, a financial investor, told the court: “Jaubert used Exomos bank accounts to pay off lawyers in the United States. In addition, he expensed Exomos shipping his car and his wife’s car.”

The witness added that Jaubert used Exomos bank accounts, “to purchase items from his company in the US, Seahorse Submarines, many of which did not arrive at all”.

The total was worth Dh11.86m according to the witness.

Court records also show Jaubert charged Exomos Dh1.8m for two submarines “which were never delivered”. The witness claims Jaubert gave himself a commission exceeding Dh2m.

The second witness, an American, said: “Two submarines were purchased from him. The first, Discovery, was purchased for Dh1,100,000. The second, Sting Ray, was purchased for Dh220,000 ... The submarines arrived with two cars belonging to him and his wife. The submarines were not functional underwater.”

Jaubert claims his fellow employees were “coerced” to testify against him or face dismissal.

Originally hired in 2004 by Sultan bin Sulayem, the chairman of Dubai World, Jaubert was expected to build recreational submarines as the chief executive of Exomos Submarines. The plan was for his luxury underwater craft to serve as a niche product for marine tourism.

On a salary of about US$13,000 a month, Jaubert lived at the Garden View Villas in Jebel Ali, drove Hummers and a red Lamborghini shipped from Florida and cruised around in high-speed boats.

“The way [the job] was presented to me was basically I would have unlimited funds,” he said. “I could build the factory I wanted and develop the models I wanted. To me, it was the opportunity of a lifetime.”

Among his claimed achievements was the Nautilus, a 45ft vessel capable of carrying nine passengers and designed to look like the fictional submarine in Jules Verne’s Twenty Thousand Leagues Under the Sea.

“It was a remarkable vessel. A beautiful submarine. It looked like an antique. Because of the nature of how it looks, I scheduled international media coverage. You can imagine a submarine like that in the Palm Jumeirah; that picture would have circled the globe and would have brought a lot of exposure to the company and on its creator.”

Days before the planned September 2007 launch, however, he was fired. Jaubert believes this was a successful attempt to block his “working design” from ever being publicly shown to function.

He claims the submarine still exists, but is languishing in the open air with no maintenance.

Like a good spy, his defence is to call the facts in question: he says Dubai World’s auditors, who questioned him about faulty or missing equipment, were unqualified to assess what parts were missing or not.

“If I have an autopilot submarine system, do you know what it looks like? No. Same with them. They labelled it as missing but they did not know what it was,” he said.

Dubai World auditors questioned him for two years, he said.

His passport was confiscated and Jaubert estimates he was interrogated at least 20 times for hours on end by auditors, a prosecutor and police. He alleged in press reports that he was threatened with physical abuse.

He was ordered to repay the Dh14m. “I knew I was facing life imprisonment,” Mr Jaubert said. “They had my passport and I lost my job. When you don’t have your passport, you cannot survive in Dubai ... so I prepared my escape.”

Obtaining a bogus passport or a new one from the French consulate was out of the question due to travel bans that he knew would be flagging his name. Quitting the country without an entry stamp would pose a problem, as would going through Saudi Arabia. “That would just make your situation worse,” he said.

“In the end, I’m a sailor, I’m a navy officer, so to me the ocean was a natural way out.”

With his claimed background in espionage serving with French intelligence until 1993 – though it is rare for a spy, and often even an ex-spy, to admit that he is one – he claims he already had the abilities to concoct an elaborate escape.

“Military training, combat, skydiving, shooting, explosives, electronics, surveillance, there are so many things,” he said, reciting his claimed skills. “Manipulation, psychology,” he added.

Jaubert enlisted a friend from France, also said to be a former agent for France’s Direction Générale de la Sécurité Extérieure, to help map his getaway to a 35ft sailing boat positioned in international waters and crewed by his co-conspirator. They sailed for eight days, finally landing in Mumbai. According to Jaubert, he travelled from there back to Florida to be reunited with his wife and two sons, whom he had sent home beforehand.

“I had a formidable feeling of freedom,” he said.

“I may be a former military man and skydiver and all the commodore stuff, but for [the criminal charges] I lived in fear every single day. Once I found myself on a dinghy in the water, then it was my element.”

Now in the US, Jaubert, who is not an American citizen, but said he holds a green card for permanent residency, feels confident he has evaded the authorities in the UAE: “If they want to extradite me from the US, it’s going to take some legwork.”

His new book, he hopes, will also help exonerate him around the world. If nothing else, however, it is likely to make him some extra cash.

read also : xpress Gulf News Dubai  or The Washington Post






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Tuesday, 18 August 2009

Herve Jaubert fled Dubai dressed as a woman

source Arabian Business


A former French special agent who worked for Dubai World has spoken of his anger at being convicted in absence of defrauding the company out of millions of dirhams - a charge he strongly denies.

Herve Jaubert told Arabian Business of a carefully planned escape from Dubai aboard a rubber dingy and dressed in a burqa to evade police using skills he developed as a spy.

The former French naval officer, who is now living in the United States, said he is not worried about being tracked down to face his five-year prison sentence because he can prove his innocence.

“I deny everything,” he told Arabian Business during a telephone interview. “When I saw that I was convicted in absentia I was totally outraged. But no matter what the truth is going to come out eventually.”

One way he hopes to be able to do this is through his book outlining the story of his escape, which is due to be published in October.

Jaubert told Arabian Business he decided to flee the country last year after his passport was confiscated by police and he was fired by Dubai World.

“In Dubai, if you don’t have a passport and you don’t have a job you cannot survive,” he said. “I found myself in this situation. So instead of fighting it, I told the auditors I would pay them back. I did not sign anything, but I played the game.”

Meanwhile he was planning his escape. Jaubert sent his wife and children back to Florida where they had all been living before moving to Dubai in 2004, and once they were gone he went into hiding.

“Once I was alone in Dubai then I turned to what I used to do before as an intelligence officer.

“A friend would rent a room for me in a hotel with his passport so my details would never show up. I would stay in the hotel for three days and then change.

“I bought a sail boat, and then I bought a rubber dingy and I escaped on the dingy. When I was a secret agent for my country I used to do that - go in and out of countries on a rubber dingy - because no one pays attention to a rubber dingy.”

Jaubert left from a beach in Fujairah early one morning after sabotaging the only coast guard boat in the area to make sure no one could follow him.

He spent six hours aboard the rubber dingy before meeting his friend, who had sailed his boat into international waters, and the pair headed to India on a journey that took eight days.

“I’m a naval officer, so at that point I knew what I was doing,” he said.

“When I was a secret agent I was a ghost, but here it was different, I was not a ghost anymore. I decided to disguise myself as a woman and then I became a ghost.

“When you are covered from head-to-toe in an abaya and veil nobody talks to you, nobody looks at you. Wearing the abaya nobody bothered me, it’s like I never existed.

“That’s the best disguise you can find because even a police officer can not talk to you.”

Jaubert was sentenced to five years in jail and fined AED14m by Dubai Criminal Court at a hearing in June at which he was not present.

The court was told that Jaubert’s company, Seahorse Submarines, had bought equipment worth AED11.8m for Exomos, the submarine division of Dubai World, but that it did not all arrive.

Jaubert had a contract with Dubai World to build two submarines, but prosecutors told the court that when the vessels were delivered they were incomplete and faulty. He wrote to Dubai World and agreed to settle the matter by paying an initial AED3m, but he fled the country before handing over any money.

My book is going to come out and people are going to know the true story and then I will put it behind me,” Jaubert said.

He is even confident that readers in Dubai will be able to get a copy.

“There’s no way this book is going to be available in Dubai in the open, but I’ve found a way. There will be some tricks, if you want. The book will be disguised. If you order the book you might receive a book on flowers or furniture, but it’s just a cover,” he said.

Related : Dubai Police to track down convicted sumarine fraudster




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