11th hour court appeal holds up Dh1m payment to investor caught up in Exential scam

Client who was awarded Dh1m by court must wait to recoup losses; UK firm says it has identified more assets to pursue.

DUBAI // Lawyers representing the Exential investors who lost millions of dirhams in a financial scam are facing delays in recovering their clients’ cash after an 11th hour appeal against a court judgment.

Last month, judges ordered a Dh1 million payout to be made to one Dubai investor. He may have to wait months before recovering his money after Exential’s lawyers appealed the decision.

Free advice has been offered by Gulf Law on behalf of the Philippine consulate to help destitute investors, and those who have left the UAE since Exential collapsed last year.

C R, a Filipino communications worker, out US$280,000 (Dh1.03m) of his family’s life savings in the fund, is facing a battle to recover even a percentage of his losses.

“I started with only one account in July 2013, for $20,000,” he said. “I was told the broker was in Mauritius so the money was transferred there. I went on to open multiple accounts, with 14 in total.”

At the start, regular payments of $1,600 a month dropped into his account but he kept his deposits locked in and encouraged family and friends to invest.

“I was completely blind to what was happening. I had reached my savings target in the UAE, so returned home to my family in the Philippines.

“It all stopped in December 2015. A lot of people in my company, my friends and co-workers, also invested but most got in at the end when it was too late.

“I contacted my Exential relationship manager, who said there were banking problems. All the money that should have been transferred from brokers in Australia was being held up.”

Like many others, C R is resigned to losing his life savings, but lawyers acting on behalf of UAE cabin crew caught up in the scam and expats who have returned home said investors should not give up hope.

Financial investigators at UK-based Carlton Huxley, which represents several investors, have been collecting listed assets in the name of Exential’s sub-companies and directors, with Australia and India at the heart of investigations.

Barney Almazar, head of legal aid at the Philippine embassy and a partner in Gulf Law, is representing the crew member who won a court judgment to order Exential to repay Dh1m.

“Exential submitted an online appeal, which took my client by surprise,” he said.

“It was only when he went for the execution of the judgment that it became apparent.

“If the points of appeal are weak or baseless, it will be dismissed and execution of the court’s judgment will continue.”

Carlton Huxley are making progress in locating and listing assets that could be recovered.

“We have found substantial numbers of victims in India and we are working to provide authorities there with information, as Forex trading is illegal [in India],” a spokesman said.

“Assets have been located and we are close to getting a lot back. We have established communications with all parties involved and are optimistic there will be a successful resolution.”

Assets belonging to Exential and its brokers could total tens of millions of dollars, although the value of investments is thought to exceed $400m.

“This is where the work of the investigators becomes very valuable,” Mr Almazar said.

“The court order in Dubai could never be enforced in Australia or India unless those governments agree to recognise the Dubai judgment.

“Then bank accounts there can also be frozen and the cash retrieved for investors to the value agreed in the Dubai court.

“My logical conclusion is that Exential is making every effort to preserve and hide assets away from the claimants.”

Exential and its lawyers could not be reached for comment.