Court hears magnate spent Dh960m of investors money

An Emirati property magnate spent the money on parties, boats and luxury cars, a tribunal hears.

DUBAI // An Emirati property magnate spent almost Dh960 million of his investors' money on parties, boats and luxury cars, a special fraud tribunal heard yesterday. Abid al Boom, the chief executive of Al Boom Holdings, and his six co-defendants cheated some 3,700 investors out of their savings. Only one per cent of the embezzled money was recovered, the prosecutor, Younis al Baloushi, told the tribunal. Al Boom bought 53 vehicles, including Bentleys, for himself and his managers, as well as a luxury yacht for himself and two additional boats, one of which was used for parties and receptions. He also spent millions of dirhams on special number plates, donated millions of dirhams to local football clubs and gave players from those clubs additional millions, the prosecutor said. "Your honour, how can a man who in 2002 owned only one car that was worth less than Dh30,000 own 53 cars a few years later and become a socialite?" Mr al Baloushi asked. Al Boom claimed that he was unable to afford the cost of having the 32,500 pages of depositions against him in the case file copied, but he paid Dh1m to two fellow detainees at the Muraqabat police station who later defrauded him, the prosecutor said. The incident came to light when al Boom filed a complaint. The tribunal heard that Al Boom duped his investors into thinking they were earning money by repaying small amounts of their money and claiming it was profit. According to court records, he placed all the money in his own name and, with his co-defendants, spent it as if it were his own. Al Boom, who is accused of breach of trust, was not in court yesterday. He is serving four years in prison for issuing bounced cheques worth more than Dh6 million. He also faces civil charges. Lawyers representing his co-defendants argued their clients should be acquitted, as they were acting solely as his employees. Al Boom's lawyer did not present a defence, and asked instead to review a report submitted by a liquidation committee appointed through a special decree of Sheikh Mohammed bin Rashid, Vice President of the UAE and Ruler of Dubai. The court adjourned until June 27. [e-mail]