Dubai Investors Alarmed by Fraud Allegations

Dubai Investors Alarmed by UK Wealth Firm Fraud Suspicions

Several investors from the United Arab Emirates are feeling uncertain after a UK-based wealth management firm—which entered the emirate market in 2022—suspended payouts and declared a moratorium towards its clients. The company is currently under investigation by the City of London Police, which is examining wide-ranging fraud suspicions, especially concerning high-yield investment schemes backed by real estate-backed bonds.

Confusion and Uncertainty in the UAE

The firm informed its clients via email that all payouts are temporarily halted. However, the message provided neither a specific deadline nor further details. Several Emirati investors, including those who invested hundreds of thousands of dirhams, reported that they have not received satisfactory responses from the local representation in Dubai and are unsure of what to expect. The office is said to only conduct marketing activities and has directed inquiries to the UK central office—to no avail.

"We feel trapped," expressed one investor, who also disclosed considering legal actions to recover their funds.

Police Investigation, Seizures, and Arrests

According to a statement from the City of London Police, four individuals have been arrested during the investigation, and cash, jewelry, and luxury items have been seized from several locations in Merseyside. The arrested individuals were later released on bail, but the investigation is ongoing. Authorities are requesting that anyone approached by the company with investment offers report them via a specially created police portal.

Company's Stance: Restructuring and Survival Strategy

In a recent statement, the company announced that it has ceased accepting new investments and is working with experts on restructuring the business. According to the release, their goal is to complete ongoing projects and meet their obligations. However, they added: "We are aware of how uncertain this period is for both our colleagues and clients... The measures taken aim to ensure the survival of the firm."

The company previously denied fraud allegations and emphasized cooperation with the authorities. Independent auditors are also involved in a comprehensive review of the company.

Lessons to Be Learned from the Case

The story has once again highlighted issues related to the safety of cross-border financial products and investor protection in the UAE. Although the country implemented strict regulations regarding financial service providers' operations in recent years, offshore or foreign-directed structures can still pose risks, especially if their local offices lack customer service or legal authority.

Investors should conduct thorough background checks before agreeing to high-yield offers—particularly when the returns seem unrealistically promising.

Conclusion

Feedback from Dubai and other emirates indicates that many investors are now anxiously waiting to see what will happen to their money. The case serves as a warning to anyone who bases the future of their savings on promising offers from foreign companies. Gaining trust is one thing—but without proper legal and financial safeguards, the risk can easily turn into a loss.

(Source of the article: The Seventy Ninth Group statement.)