An almost year-long investigation into alleged criminal activity by the former chief executive of the developer Deyaar, Zack Shahin, and three co-accused is nearing its end, the Dubai Attorney General said yesterday.
In a statement released by the state news agency WAM, Issam al Humaidan said the charges against Mr Shahin and his co-accused include forgery, embezzlement and fraud. Authorities said they had also uncovered evidence supporting an additional charge of money laundering.
The announcement provided the most detailed look yet into the case that first came to light 10 months ago. Prosecutors allege the co-accused transferred millions of dirhams in misappropriated funds between banks in Lebanon, Switzerland and the US.
Mr Shahin’s lawyer in Dubai, Ali al Shamsi, declined to comment on what he called “a very sensitive case”.
“We are in touch with prosecutors, but it looks like investigations will take a long time before they conclude,” he said.
Mr Humaidan said a report by the Dubai Financial Control Department at the Rulers Court received in November uncovered cash transfers between banks in several countries. He said the prosecution was in touch with these banks to obtain the information necessary to transfer the investigation to court.
According to the statement by the Attorney General, the Dubai Financial Control Department report revealed Dh31.5 million (US$8.6m) was alleged to have been embezzled by Mr Shahin alone.
He and his co-accused are suspected of embezzling a total of Dh98m.
Mr al Humaidan said Mr Shahin’s lawyer had been kept informed of developments in the case and visited his client regularly.
Representatives from the US Consulate have also visited Mr Shahin, who is under precautionary detention.
He noted the prosecution had the right to detain a suspect for 21 days before they must appear in court. The judge may extend the suspect’s detention for a maximum of 30 days based on the prosecution’s request before the detention order has to be renewed.
The statement from the Attorney General only names Mr Shahin, who has spent almost a year in custody.
James Jatras, a lawyer in the US who has been hired by Mr Shahin’s family, has placed an advertisement about the case in American newspapers. He is due to give a press conference in Washington tomorrow.
“We would be very pleased to see what evidence they are talking about,” he said last night.
Mr Shahin’s arrest was first reported in April, when police said he was being held on suspicion of embezzlement and betrayal of trust. Soon after it was announced that Ganesan Krishna Kumar, who runs a Dubai-based advertising agency, had been detained in connection with allegations of embezzlement at Deyaar.
As the investigation widened towards the end of the month, it came to light a Lebanese sales executive at Deyaar, Charbel Boutros, had been arrested, followed by the confirmed detention of a fourth man in the Deyaar investigation, Jose Mebar.
Deyaar, a Dubai development company, has rebranded itself since the arrests with a new logo and advertising campaign, and appointed a new chief executive.
