Corruption cases that rocked Dubai

Corruption cases that rocked Dubai

A string of arrests and unprecedented action by financial regulators shows that the emirate is clamping down on fraud. We take a look at six cases that shook Dubai Inc.

March 25, 2010 4:29 by Katherine Azmeh

2. Saad Abdulrazak, former chief executive of Dubai Islamic Bank

Saad Abdulrazak, the former director of Deyaar Properties and former chief executive of Dubai Islamic Bank, was sentenced to three years in prison and fined $31 million for accepting a bribe and unlawful commissions.

The Criminal Court of First Instance convicted the 40-year-old Emirati of accepting a AED11.75 million bribe to facilitate a property sale and collecting unlawful commissions worth AED16 million on the sale.

3. Zack Shaheen, ex-CEO of Deyaar

Investigations into the business activities of Zack Shahin, ex-CEO of Deyaar, are ongoing following allegations against him over “forgery, embezzlement, fraud and could also involve money laundering”.

Shahin, a US citizen of Lebanese origin, was detained in March of last year, on allegations that he took bribes from co-defendant, Mohammed Khalfan bin Kharbash, a former minister of state.

Prosecutors said that the former CEO created questionable land schemes and transactions, and abused power-of-attorney privileges, allowing him to bypass Deyaar’s board and make executive decisions. The alleged financial improprieties are said to have created exorbitant financial losses for Deyaar.

4. Michael Bryan Smith, Former personnel manager for Limitless

A Thai criminal court judge announced in February that Michael Smith, who is British, will be extradited to the UAE to face charges that he embezzled $150 million from Dubai property company Limitless. Smith, 43, was arrested in Bangkok in May 2009, where he was jailed. His extradition comes despite the lack of a formal extradition treaty between the two countries.

Smith faces charges that he siphoned other workers’ salaries into his own bank account during his tenure as personnel manager at Limitless. Dubai authorities will seek to charge Smith with acts of forgery, “betrayal of trust and illegal possession of stolen funds”.

Commenting on his decision to proceed with Smith’s extradition, the judge commented that “the UAE has expressed willingness to do favors if Thailand asks in the future,” according to a report by the Times newspaper in the UK.

The reference to ‘favors’ may signal a significant shift in the prospects for former Thai Prime Minister Thaksin Shinawatra, who is wanted by the Thai government and reportedly spends a considerable amount of time in Dubai.

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Tags: Deyaar, DIFC, Dubai fraud, Dubai Islamic Bank, Dynasty zarooni, fraud, Kabir Mulchandani, Limitless, Michael Bryan Smith, Omar bin Sulaiman, Saad Abdulrazak, Tamjid Abdullah, Tawfiq Abdullah, Tawhid Abdullah, Zack Shaheen

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6 Comments

jazzy jo on March 27, 2010 7:31 am

Brave Dubai and brave Sheikh Mohammed. Dubai has gone a long way in the new millenium. Corruptors in the past (80s and 90s) were allowed to stay in their seats and were also given a standing ovation, and media protection (i.e their names in full and photographs were not released/they remained anonymous.

Exposing people who are corrupt is very important and makes others think twice before following the same footsteps. I believe we should have a law and a strong policy to expose corruptors (like the policy in the US called the ‘whistle blowers’. Other developed and developing countries also have similar policies) in place to protect employees whereby employees (who before anyone else can suspect their bosses intentions and may have evidence to prove these allegations. Customers/ clients who deal with people in the company may also have some proof on bribery etc…
Majdi Al Ayed on March 27, 2010 10:29 am

I heard someone saying this before and I am inclined to make this comment again. All that seems to be happening is that you take old news reports which people have already read and recycle them with no effort or passion for effective journalism. You think that by compiling different reports and stories from other sources, that you are actually creating an “interesting” story which is not really the case.

Aren’t you capable of doing some extra work such as properly researching and coming up with innovative story angles that will actually mean something to your readers?
John Duncan on May 27, 2010 7:34 pm

All these cases are nothing compared to the amount of money others have embezzled .
Nawaz on September 15, 2011 2:52 pm

The latest is that Kabir Mulchandani an indian expatriate in dubai, the real estate tycoon cleared of fraud charges in December, said he will not sue his accusers but may take legal action against media outlets that published defamatory claims against him.

Kabir Mulchandani is currently a CEO of Skai Holdings Dubai.

I have been researching on dubai real estate lightning debacle since post global financial crunch and found Kabir Mulchandani name among those who has been falsely framed. Reference site

http://www.arabianbusiness.com/-no-point-in-pursuing-accusers-says-mulchandani-401266.html
Leila Khan on November 13, 2011 10:19 pm

I bought a unit 2006 from Minc property , Apex suites, after all payment 100% paid Haroon Mahmood the ceo said that the price size and date were changed, the home was cancelled and resold, then Haroon sent a check, but the bank will not honor this check in 2008, After that they said we sold youtr unit and spent the money, How can any one get this money back? Haroon lives in a billion home in Canada. LKhan
Leila Khan on November 13, 2011 10:23 pm

Can sheik Mohammed Help, we are poor people retired and this is our life savings Apex suites, Haroon left Dubai for Canada , can he be brought back? will we all get our money back? LK