DUBAI // A committee set up to deal with the fallout from the Dh1 billion embezzlement by former property magnate Abed Al Boom has issued Dh60 million to those who lost money.
The special judicial committee, established on the instructions of Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, began distributing the money this week from Al Boom's liquidated money to creditors and investors whose claims had been approved by the committee.
Al Boom was convicted in 2011 of embezzling almost Dh1bn from thousands of investors and was sentenced to more than 900 years in jail.
The conviction followed complaints in 2008 that related to property investments. Al Boom spent investors' money on parties, boats and luxury cars. Only 1 per cent of the stolen money was recovered.
However, it was not known if he will be jailed as the committee must finish its work before a final ruling is made.
Chairman of the committee, judge Saeed Al Zabbi, said that the Dh60m is 10 per cent of compensation due to creditors and investors but the payouts were agreed upon after the committee persuaded them to settle for lower amounts.
A financing company, the judge said, agreed to take Dh4m instead of Dh36m, for example, while another settled for Dh800,000 instead of Dh5.5m.
Mr Al Zabbi said that the committee sold Al Boom's assets over four years and managed to collect Dh115m, some of which had already been distributed to creditors, while the remainder will be paid in the second and last instalment.
He added that the committee will contact Dubai prosecutors to confirm that the money collected from selling Al Boom's assets was not sufficient to cover what was owed, after which action may be taken against him.
Mr Al Zabbi explained that Al Boom was not acquitted but that the case had been frozen until the committee had finished its work, according to a Ruler's decree. The decree said that no criminal or civil action could be taken against Al Boom until all his assets were liquidated and his investors reimbursed.
Al Boom was found guilty of breaching the trust of 3,706 investors and embezzling Dh960m of their money. He was sentenced to 923 years and nine months in prison - three months for each offence.
December 31, 2013 was the last date that creditor or investor claims could be accepted by the committee.
salamir@thenational.ae
