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Allegations of fraud for AED 400 million dismissed by the Dubai Prosecution |
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Written by Cedar Rose
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Wednesday, 27 January 2010 17:08 |
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A charge of fraud against a Dubai businessman was dismissed by the Dubai Public Prosecution after it was brought by investors against Kabir Mulchandani, chairman of the local company Dynasty Zarooni Real Estate LLC. However the Dubai Public Prosecution ordered a charge against him in the Criminal Court.
Mulchandani and two other men, one Emirati and one Indian, where ordered by the Prosecution Office to be referred to the Criminal Court for the charge of establishing an AED 17 million (USD 4.6 million) "double money club".
However, it dismissed allegations of defrauding investors out of AED 400 million (USD 123 million).
Mulchandani had reportedly set up an 'investor's club' where potential property buyers paid a fee to be given first refusal on new off-plan projects from Dynasty Zarooni at pre-launch prices.
Investors alleged that Mulchandani promised returns of a million Dirham a month.
The lawyer representing the investors namely, Salem Al Shaali, told local press that Mulchandani claimed his investments would make big profits for clients and he took their money, but the promised profits were never paid out. Al Shaali was also planning to appeal to the Dubai Public Prosecution about the dismissal.
However, Issa Bin Haider, Mulchandani's lawyer said his client's businesses were legal and he was providing a service for money. He said there was no evidence against Mulchandani and blamed the current financial crisis and the decline in property prices for the cause of the problems.
A source from the Public Prosecution said that Mulchandani is currently out on bail awaiting his case's hearing in the Court a date for which has not been yet set. He was also reported to have several unpaid cheques cases logged against him. |
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Last Updated on Thursday, 28 January 2010 16:48 |
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Gulf Finance House (GFH) announces Net Losses of USD 121 million up to 3rd Quarter 2009 |
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Wednesday, 11 November 2009 00:00 |
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Gulf Finance House (GFH), one of the largest Islamic financial institutions in the Middle Eastern announced a Net Loss for the third quarter of 2009 of USD 29 million, bringing total losses to USD 121 million loss for the year 2009 to date, compared with a profit of USD 82 million made during the third quarter of 2008 (USD 302 million for 2008 up to 3rd Quarter).
The results mark an improvement of 46% from the second quarter 2009 results of Net Loss of USD 54 million.
According to analysts, during the last three months of 2009 GFH focused on strengthening its Balance Sheet, diversifying the strategic business model and making the organizational changes necessary to begin bridging the revenue gap in 2010. During the course of a successful rights issue exercise targeted at raising between USD 200 million to USD 300 million, the Bank received subscriptions in excess of USD 300 million. GFH has also announced the first of two USD 100 million convertible Murabaha (Islamic facilities) with Macquarie Group and has begun the sale of non-core assets with a partial divestiture from Qinvest in a deal worth USD 51 million. |
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Last Updated on Tuesday, 17 November 2009 13:47 |
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UAE central bank issues reminder on Politically Exposed Persons (PEPs) |
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Tuesday, 01 September 2009 00:00 |
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The central bank of the United Arab Emirates has issued a reminder to all UAE banks to formally declare any accounts they hold of Politically Exposed Persons (PEP) by no later than Sunday 6th September, 2009.
The request originally dated 2nd August 2009 stipulates that banks must submit details of any PEP and business relationships with family members or close associates of PEPs by August 24, 2009. The UAE central bank defines PEPs as "individuals who are entrusted with prominent public functions in a foreign country for example heads of state or of government, senior politicians, senior government, judicial or military officials, senior executives of state owned corporations, important politically party officials". It added that business relationships with family members or close associates of PEPs involve reputational risks similar to those with PEPs themselves.
"No bank is allowed to open an account to a foreign PEP, as defined unless it has been authorised in writing by the central bank," the letter stated.
Screening for PEPs is an intrinsic requirement of "know your customer" and enhanced due diligence processes as a safeguard against money laundering.
The move, which brings the UAE into line with standards in other international financial centres, follows recent high-profile cases involving alleged fraud in the region and internationally such as the claims by the troubled Saudi Arabian conglomerate Ahmad Hamad Al Gosaibi and Brothers (Al Gosaibi Group) against Dubai's Mashreqbank and Maan Adbulwahid Abdulmajeed Al Sanea (Maan Al Sanea), the billionaire head of the Saudi Saad Group, for alleged fraud, and the case of jailed US financier Bernie Madoff, convicted of swindling USD65 billion from investors.
More than 100 countries have changed their laws related to financial services regulation, with the fight against political corruption playing a foundational role. |
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Last Updated on Tuesday, 10 November 2009 14:11 |
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Lebanon is back on the investors map |
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Thursday, 08 October 2009 13:49 |
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According to the Investment Development Authority of Lebanon IDAL, Lebanon is on track for a 7 per cent growth in GDP in 2009, highlighting the country's continued economic surge and transformation into one of the region's most attractive investment hubs. The country's improving economic conditions are manifested through various key economic indictors, including a sustained increase in Foreign Direct Investments (FDI), a fifty percent rise in bank deposits, growing number of tourist arrivals and expanding real estate developments among others.
While Lebanon’s FDI grew by a remarkable 32 per cent from USD 2.5 billion in 2007 to USD 3.6 billion in 2008, it is poised to grow by another 20 per cent to reach USD 4.32 billion this year. Bank deposits were reported by IDAL to have increased by 50 per cent from July 2008 to July 2009 despite the shortage in cash flow in the global market and the financial slowdown sweeping other countries.
An IDAL spokesman was quoted saying "after four years of political and economic challenges, Lebanon has now enjoyed economic stability and growth for the past two years, which underscores the resiliency of our economy and our country's ability to overcome major problems. The excellent performance of the Lebanese economy is reflected on various economic indicators, including a prospected 7 per cent increase in our GDP this year. Furthermore, several new business opportunities have opened in vital industries such as health tourism, conference tourism, ICT, and the services sector," the spokesman said.
Tourism in Lebanon has achieved one of the biggest gains the past two years and IDAL pointed out that Beirut was even acknowledged by the New York Times as one of the top tourist destinations in the world in 2009. With the rising tourist footfall, it was revealed that hotels have witnessed a 100 per cent occupancy rate since March 2009 as the country accommodate around 1.8 million tourists this year.
Real estate demand for business, investment and residential properties has also sharply increased resulting in new investment opportunities in infrastructure, business spaces, and shopping centres. According to recent real estate industry figures in Lebanon, the total number of building licenses issued increased by 19 per cent during the period January to August 2009 compared with the same period last year. Licensed built-up areas also increased by 5.3 per cent, while transactions involving foreign owners grew by 8.5 per cent. Cement consumption was also up 22 per cent from June-July 2009 compared with the same period in 2008. |
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Last Updated on Tuesday, 10 November 2009 14:10 |
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Copyright © 2010 Cedar Rose. All Rights Reserved.
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