Al Boom loses appeal against investigators

Abid al Boom, a businessman, loses his last battle with the committee investigating allegations that he duped thousands of investors out of Dh960 million (US$260m) through a bogus investment portfolio.

DUBAI // Abid al Boom, a businessman, lost his last battle with the committee investigating allegations that he duped thousands of investors out of Dh960 million (US$260m) through a bogus investment portfolio after the Dubai appeals court dismissed his Dh1.1bn compensation claim. Mr al Boom filed the petition in September 2008 on grounds that the committee exceeded its authority and caused substantial financial damage to his businesses by freezing his assets while inquiring into the case.

The claim is the biggest against government entities in the history of Dubai courts, according to civil prosecution records. The Dubai Civil Court of First Instance dismissed his claim last March but Mr al Boom appealed. The decision of the appeals court was rendered on January 10 and released yesterday. "The ruling confirms that the measures taken against al Boom were correct - and thus gives credibility for the committee," said Abdullah Mohammed Klieb, the head of Dubai's civil prosecution office.

"Al Boom had refused to co-operate with the team, which was assigned by the committee and did not provide the necessary documents for the financial controller. But we were able to prove that he did provide false information and, additional to the 14 properties we knew about, there were another 11 properties he had not informed us about." The committee, which included representatives of Dubai's police and the departments of economic development and financial control, has recommended a general liquidation of Mr al Boom's properties and assets. It also referred him and his associates to the public prosecutor.

The civil court ruling will not affect the course of the criminal case registered against Mr al Boom and seven others charged with issuing fraudulent cheques, swindling and breach of trust, Mr Klieb said. Mr al Boom and his associates - his brother KB and a fellow Emirati, ARB, along with the Malawian MM, the Somali administrators ZH, AH and ZY and the Egyptian accountant ME - were granted bail in November after their lawyers argued that there was no legal reason for them to remain in custody.

The court granted bail on condition that Mr al Boom turn over his passport and those of his wife and adult children, along with the passports of five other unidentified Emiratis. Mr al Boom faces a fine of Dh500,000 if he fails to appear in court without a valid reason. The other suspects will be fined Dh100,000 each if they do not appear in court. [e-mail]