In a shocking trade scam in the United Arab Emirates, an Indian-owned firm operating under the name ‘Dynamic’ has reportedly defrauded businesses in Dubai stealing goods worth more than 12 million Dirhams which is about Rs 29 crore.
According to the reports, the company had located its office and warehouses in Dubai Silicon Oasis (DSO) which are now empty and the staff cannot be reached. The Indian figurehead of the bogus company has reportedly managed to escape the UAE.
How the scam operated
The conmen initially bought only small quantities of merchandise from the suppliers in cash. They also obtained short-term credits with post-dated cheques for products such as iPhones, building materials, laptops and even 15,000 towels and others. Two weeks ago, they disappeared closing the doors for suppliers and leaving behind bounced cheques and empty offices, Khaleej Times reported.
The same Pakistani businesswoman who supplied food items such as pulses, almonds, and rice told the newspaper, “I trusted them because they paid 300,000 Dirhams upfront. Now, I have lost goods worth 800,000 Dirhams.”
Another victim was Wajeeh Shahid from MMC Global Information Technology who reported the loss of Lenovo laptops, and routers worth 267, 000 Dhs. “The first cheque cleared without any problem which made them look as genuine,” he said.
Trail of victims
Reports suggest that at least 200 companies and consumers were defrauded by the bogus company. Jernaus Britto of Offsetfi Trading who was conned for 78,000 Dihrams worth of laptops and network cables explained, that the scammers presented a valid trade license and fake audit reports to establish credibility.
The scam also predisposed people including Mohammad a sales representative for a Chinese company that supplied power tools where the amount defrauded was 52,000 Dhs. “I was fired because my company said it was my fault that I did not verify the deal properly,” he said.
A Lebanese who supplied high-grade hotel towels lost 180,000 Dihrams. He expressed disbelief stating, “This has shaken our confidence in new buyers.”
Some of those affected found their property in a warehouse in the Sharjah Industrial Area. However, the premises’ owner said that he bought them legally and the victims could do nothing about it.
Link to other fraudulent companies
Gaining more insights, it was found out that the audit reports used by Dynamic had connections with other fraudulent related companies like Royal Luck Food Stuff and Harbine Middle East Marine Services which had fled after vomiting to suppliers.
Meanwhile, the victims have filed a police complaint at Al Barsha Police Station where they also reported cases of bounced cheques provided by the company. The affected people have demanded from UAE authorities the scam to be treated as intentional fraud.
The police investigation initiated into the case revealed that the audit reports used by Dynamic had connections with other fraudulent related companies like Royal Luck Food Stuff and Harbine Middle East Marine Services which had fled after duping suppliers.
