UAE car scam gang cheats

The Emirati primary defendant accused of money laundering and fraudulently taking people's money in a car investment scam, involving dozens of people, has denied the charges.

He claims he was legally buying and selling the cars through showrooms and that he had paid almost all the car owners when the police arrested him.

The man is among 51 men, majority of them Emiratis, who are on trial at Abu Dhabi Misdemeanour Court, for scamming thousands of people out of Dh800 million.

The three main perpetrators and an agent are currently in police custody, while the remaining 47 defendants were given bail. They all denied the charges in court.

Their case was split into four sections and earlier this month, the court began hearing their trial.

Official court documents stated that the scam began after one of the men needed money to pay off a debt. He bought a car and paid for it using a post-dated cheque. He then sold the car and cleared the debt.

When time came to cash the cheque, he bought another using another post-dated cheque, sold it off and cleared the first seller.

Investigations showed that the Emirati and his gang lured customers into buy cars from them and later, they would encourage them to sell the cars, again through the gang, at a higher price by offering the customers big profits.

Officers said the fraudsters promised the investors a 100 per cent return on their money, before they reduced it to between 70 and 80 per cent.

The accused allegedly issued post-dated cheques to the investors. Those people who invested first received the promised profit, which encouraged others to join the scheme that went on for a few years, according to authorities.

At the latest hearing, the Emirati told court that he was wrongly accused as all his car deals were genuine. "All my dealings in the cars were genuine and legal. I was operating my business through car showrooms," the Emirati told the court.

"I had stopped engaging in this business on November 14, 2016, because I had made enough profits from it."

He noted that he had cleared payments to almost all those he owed money to in car deals, with money borrowed from relatives and friends, before the police arrested them in March this year for fraud. "I ask the court to give me time so I can pay off other people I owe money to. I am sure I will clear them all," he said.

The second and the third defendants also denied the charges against them, stressing that it was the first defendant who signed all agreements for the car purchases and sales. Through their lawyer, they requested for acquittal saying that they were innocent.

Prosecutors said they have received 1,909 complaints against the men and that the money deposited by the victims amounted to Dh800 million. The victims sought Dh2.3 billion in financial claims, including the deposited amount.

Investigations had revealed that the defendants later took possession of all the inventors' money. The men used part of the amount to buy luxury cars and special car numbers. "Many of the accused also purchased properties and shares. One of the men bought a camel worth Dh10 million," said prosecutors.

When the defendants were caught, police seized Dh160 million from them, and 395 cars. The public prosecution begun procedures to sell the confiscated cars, which are expected to bring more than Dh52 million at an auction.

Car scam case

No of accused men- 51 (3 main accused)

No of complainants- 1,909

Money spent by victims -Dh800m

Claims sought by victims-Dh2.3 b

Amount seized from accused-Dh160m + 395 cars

Expected amount from confiscated car auction-Dh52m

How the car scammers operated:

One main accused needed to pay debt

He buys a car and pays with post-dated cheque

He sells the car and clears debt

When car seller tries to encash cheque, he repeats the seqence and pays off first seller

This becomes a cycle, going on for a few years

Primary accused stops business in Nov 2016, with payments left to be made

Police arrest him in March 2017 and bust rest of the scam gang

Source: Khaleej Times