A 43-member gang has been arrested in Dubai for running fraudulent car scheme that duped about a billion dirham ($350 million) from a large number of people. The latest scam is one of the series of frauds that has gripped the oil-rich gulf state in the past five years.
According to a senior police official, the fraudsters had hoodwinked around 3,700 people by offering them bogus car investment schemes.
A Close Look at the Car Sale Scam in the UAE
Prosecutors had initially arrested three gang members that were running bogus investment scheme. The main suspects of the crime were mostly Emiratis. Others were working as agents of the suspects. They had ensnared people by offering them a huge return on car trades. They had issued fake post-dated checks to the investors.
The fraudsters had been marketing the scheme for several years. Modus operandi of the gang was similar to other big scams that had come to light in the gulf country. Initially, people got the promised returns. This encouraged other investors to join the car trading scheme.
According to the initial report by a senior investigation official, around 400 people had lost their money. However, that figure soon jumped to more than 3500 after more people came forward to report about the case. The cases have been registered in different localities in the UAE including Al Ain, Abu Dhabi City, and the Western Region.
After the discovery of these car trading scammers, the local prosecution bench ordered seizures of cash, vehicles and bank accounts of the suspects. They are currently facing charges of money laundering according to the local penal code.
A special team has been handed over the task of probing further into the case. Recent details of the investigation committee said that it has been discovered that the case was one of the three bogus investment scams run by the gang. There are two others schemes that are now known to the authorities. This means that the swindled amount could be much higher than the reported figure. It also means that it is one of the biggest scams in the oil-rich country.
Final Words of Advice
Expats are advised to remain cautious when investing in any trading scam. The increased number of opulent and the rich in the gulf Arab state have attracted the interest of a large number of scammers. They use every means possible to dupe people into entering hard earned cash in their coffers. The best advice to avoid getting trapped in the snare set by the individuals is to remain extra vigilant.
Foreigners are advised to avoid entering into any trading scheme without consulting with their attorneys. It’s extremely important to carry out a detailed investigation before investing in any scheme. Also, it’s best to avoid investing in any scheme that seems too good to be true.