An administrative manager at a public firm, that trades in stocks and international bonds with world markets, is standing trial in absentia at the Dubai Court of First Instance on charges which include enabling a businessman and financial advisor, 46, and his three trading companies to misappropriate $59 million.
Court documents show that the manager, a 44-year-old man, abused his post and misused the funds he had been entrusted with for investment in purchasing stocks and the international bonds from the world markets for the owner group.
The parties allowed to misappropriate the funds by the manager include three firms against which charges were also levelled in the public prosecution charge sheet. Three other companies also benefited from the ill-gotten funds.
In the unlawful transactions the manager ran from July 2007 to January 2015, he intentionally damaged the interests of the firm he worked for. A case was registered at Al Rafaa police station.
Public prosecution records show that he ran purchase deals with inflated prices with a forged (bogus) list of investors. This resulted in the plaintiff’s loss of millions which went to the other accused in the case. The manager did those unlawful favours for illegal commissions.
He collected a percentage of the illegal deals to the tune of $6.8 million.
The businessman is accused of offering bribes to the manager. The businessman is the owner of one of the firms and a co-partner in the two other companies which are facing charges in the case.
One of the companies, owned by the businessman, used to be a bankrupt company (working in the IT training domain). The businessman co-owned it – together with a runaway accomplice – and changed its name and business activity (it became an oil refinery management firm).
The businessman made the financial market in India believe that his business was authentic and thus got a licence from that market to issue bonds to shareholders with a total value of $200 million. The list of shareholders turned out to be fake.
His purpose was to sell the shares to other investors, including the plaintiff, at prices exceeding by double the original value per stock (a minimum of $50 per share).