An Indian businessman in Dubai has been accused of setting up a Ponzi scheme to siphon off more than $270 million from unsuspecting victims. The man used his firm based in Dubai, Exential Group as a frontier to embezzle large sums from a reported 7,000 victims. Only a small number of them came forth to report the crime to local authorities and even then, of the 30 complaints, only 7 were actually admissible in courts and the judicial system.
This is because proper documentation was merely an afterthought for most victims who were blinded by the dazzling get-rich-quick schemes of the con artist. Exential Group would lure in potential victims by promising 100-150 percent of profit on their investment, even dishing out the profits initially to lure even more investors. However, the firm would stop paying these profits without issuing any notification, eventually resulting in the suspect disappearing from the scene altogether.
The acting director of Al Barsha police station, Major Majed Al Suwaidi said that the authorities themselves have little idea on the exact number of people swindled out of their money. But he reassures the victims and the general public that all cases and issues related to the incident would be investigated.
This case is not the first of its kind which milked millions out of poor workers in Dubai, similar rackets have taken place in the past. Most of these victims are domestic workers who often take out large loans to invest in the Ponzi schemes with hopes of having a lucrative side business.
Those who are found breaking UAE laws can face jail terms for up to three years and a relatively small pittance of a fine ranging up to Dh30,000 – but it seems that the pros of setting up an embezzling racket in Dubai far outweigh the cons. The risks of getting convicted can be further minimized by removing all forms of documentation, which means that the victim’s complaints are often times dismissed for failing to stand in a court of law.
There are some signs to watch out for before trusting your money to a company
Always be skeptical towards businesses that promise a large amount of profit over a short period of time
No investment is completely protected against risk, so it should raise alarming bells in your head should the company be dishing out no risk guarantees.
Scammers often times spout nonsensical conspiracy theories about how the government is trying to keep the secrets of getting rich to themselves
The most important aspect of any transaction is proper documentation, the biggest giveaway that you are dealing with a fraudster is their lackadaisical attitude towards proper documentation.