The chilling story of the million-dollar trading scam conducted by Xplore Fareast Marine in Dubai is just one of the series of frauds committed in the Gulf state. Previously two other phony companies, Reliance Group and Barnabio General Trading, had swindled local traders of millions of dollars before switching off the phone lines and shutting the offices.
Operating from the head office located at Al Khaleej Center in Bur Dubai, Xplore Fareast was the third company that had duped scores of firms by giving them fake checks. The staffs of the company had gone on a shopping spree using the dud checks. The purchased goods that ranged from solar cells to plastic and hotel products were then sold to a third party after which company personnel deserted the office.
Victims of the Fraud Arrested by Local Police
The stolen goods were finally found in a local warehouse. One of the warehouses was situated in AL-Jaddaf while the other one was located in Dubai Maritime City (DMC). But the owners were unable to get back the goods back due to a court order that disallowed movement of goods out of the warehouse.
The warehouses where the goods of the victims were located had been sealed on the order of the court.
Fearing that the goods would be shipped out of the city by the warehouse owner, the victims of the trading scam took turns to watch over the warehouse. However, eventually, the traders lost patience and stormed into the warehouse where the stolen goods were alleged to have been stored.
The Bur Dubai police promptly arrested all the victims who were already reeling due to the millions lost in the trading scam. A local businessman said that it’s ironical and at the same time distressing that the victims had been put to jail while the criminals are at large.
The irony is that it was the victims and not the police or the local authorities who had tracked down the warehouse where the stolen goods were reportedly stored. The warehouse owner said that the goods were purchased from a third party.
Traders belonging to different countries in the UAE have been badly hit by the trading scams. Due to the trading scams, there is a panic in the market and firms have stopped selling goods on credit. A feeling of fear prevails among the traders in the UAE. According to a trader who had lost about 300,000 AED ($81,673), if the present situation continues in the Gulf country, the traders would be forced to close their operations and move out. This might create a ripple effect that may change the very dynamics of business in the oil-rich Arab country.