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    • Criminal Complaint filed against Al Fajer Properties Sheikh Maktoum
      Criminal Complaint filed in Germany against Sheikh Maktoum Hasher Maktoum Juma Al Maktoum CEO of Dubai Developer Al Fajer Properties The Dubai Sheikh who mislead and extort a German Couple  Germany – Dubai 2011 A German elderly couple , today 80 + 50 years old who have been Dubai Tourists since a decade, bought in 2005 an apartment at Nakheel´s Dubai Residen […]
    • UAE: Human Rights Blogger, Sorbonne Lecturer Charged With ‘Humiliating' Officials
      source Human Rights Watch www.hrw.org (Beirut) - The United Arab Emirates attorney general should immediately drop all charges against five pro-democracy activists to halt their trial, Human Rights Watch said today. The charges of "humiliating" top officials relate solely to the defendants' peaceful use of speech to criticize the UAE governmen […]
    • Nakheel Dubai Sunland Case
      June 5, 2011After 21 hearings, Chris O'Donnell, the Australian chief executive of Dubai's major developer, Nakheel, came to the defence of his former colleagues Matthew Joyce and Marcus Lee. Mr Joyce and Mr Lee are accused of profiting from the sale of land that had been earmarked for a colossal high-rise development, which was to include the futur […]
    • Dubai Nakheel CEO decided to leave the company
      Dubai June 7, 2011 Nakheel said on Wednesday that its CEO Chris O'Donnell had left the company "after completing his contract terms". O'Donnell, an Australian who joined the developer in 2006, said he had decided to leave Nakheel following five years spent with the company, the statement added. O'Donnell has overseen a traumatic time […]
    • Owner of Dubai Developer Damac Hussain Sajwani files case against Egypt corruption ruling
      Dubai property developer Damac said on Tuesday it had filed an international arbitration case against Egypt over a land dispute and the conviction of its chairman and owner, Hussain Sajwani.A Cairo court last week sentenced Sajwani in his absence to jail and ordered him to pay a $40.5 million fine in connection with his 2006 purchase of land at Egypt's […]
    • Dubai Palm Jumeriah - Investors plan to take legal action
      Investors in Dubai Palm Jumeirah’s Golden Mile complex will this week serve the developer behind the project with a legal ultimatum to hand over their units or issue them with a refund.Up to ten investors in the luxury complex plan to issue Souq Residences with legal notice in a bid to force a resolution to a dispute that has been ongoing for more than a yea […]
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    This Website of the Blog 7starsdubai.wordpress.com and 7starsdubai.com content still existing media releases and comments from reputated press and websites only. The content of this Website focus to consumer protection for Investors of the Dubai Property market, the UAE and the Middle East. Press Article from the international Press who report about Fraud in relation with Property Investment and Real Estate Developer Investor Disputes in Dubai and the UAE as well reports from the Press about other criiminal acts and Civil Real Estate cases, Lawsuits before the Court in Dubai, the UAE or other countries. Furtheron we show reports about consumer protection and human rights in the Middle East. Actual Topics about the Unrest in Middle East. The information comprised in this section is not, nor is it held out to be, a solicitation of any person to take any form of investment decision. 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Posts Tagged ‘Fraud Dubai’

Dubai property market turned into a nightmare for Marcus Lee

Posted by 7starsdubai on August 28, 2014

A dream job in the Dubai property market turned into a nightmare for Marcus Lee when he was imprisoned on a false bribery charge. In a new book, he describes how he survived five years of living hell, sustained by the support of his wife.

Extract of the Book:

JULIE: I spoke to Matt Joyce’s wife, Ange. She said she had a number for Sultan Ahmed bin Sulayem, the chairman of Dubai World, Nakheel’s parent company, and she would call him to try to get information. She seemed just as mystified as I was.

MARCUS: On the night of January 28, Matt and I were put in the back of a blacked-out 4WD. We started to ask each other questions when one of the Emiratis said, “No talking.” Speaking in a low murmur, I said I was totally confused. Matt dropped a bombshell. He said, “I helped this company open up a trust account.” I said, “What? Which company?” He said, “I helped Prudentia to open up an escrow account, because they couldn’t open up a bank account in Dubai.”


Continue reading original source Sydney Morning Herald

or go to the Facebook account of Marcus Lee


Posted in 7starsdubai, Dubai, Dubai Fraud, Dubai Justice, Dubai Prison, Dubai Property Fraud, Marcus Lee, Matt Joyce Dubai, Nakheel | Tagged: , , , , | Comments Off on Dubai property market turned into a nightmare for Marcus Lee

Sheikh Maktoum CEO of Al Fajer Properties committed a fraud and did not pay his debts

Posted by 7starsdubai on August 16, 2014

Al Fajer Properties “Residential” Tower Jumeirah Business Centre was a Ghost Project

Sheikh Hasher Maktoum – The Royal Thief of Dubai – Criminal Complaint

Sheikh Maktoum Hasher Maktoum Al Maktoum from Dubai UAE ( today also CEO of Shuaa Capital ) mislead a German couple in 2008 by suggesting them to deliver an 100 sqm Apartment in a “Residential” Tower , Plot H3 in Jumeirah Lake Towers Dubai. But in reality he never intend to built a Residential Tower in 2008. In his full acknowledge that the Tower will be a Commercial Office Building, he mislead the couple, put their money in his pocket and didn´t pay back a single cent to them. Sheikh Maktoum caused the couple damage over 1,5 Mio AED. He embezzled their property rights in March 2008 to a third party , enriched himself and committed a fraud.  Several attempts to resolve this claim have failed, because Sheikh Maktoum Hasher reacted only in form of extortion and other threats against the german couple.


They bought the apartment in 2005 at Nakheel´s Falcon Tower in Dubai. Nakheel transfered the contractual obligation in mid 2006 to DMCC (Governement Dubai). DMCC later in 2006 named for the Falcon Tower the developer Al Fajer Properties, who stept in the contractual obligations. The couple was promised at the transfer that nothing will change, that Al Fajer Properties will deliver the Apartment in an 100 % Residential Tower, 100% under the conditions and Building constitution like the bought in 2005 at Nakheel, completion 2008.  The couple paid 3 installments (45%) of the total ammount directly to Nakheel. The payments have been transfered by DMCC to Al Fajer Properties.

But in reality Al Fajer Properties planned, market and sold this Building  as 100 % Commercial Tower March 31, 2008.

Sheihk Maktoum Hasher Maktoum mislead the couple in March 2008 and used a lawyer to extort them. He forced them to sign an uncolmplete document with false informations.

This action has been rejected by the couples lawyer.

During this period he already prepared the Deal with Dynasty Zarooni, whom he sold the sqft for the triple of the price the couple once bought.

The Tower developed by Al Fajer Properties  is now named Jumeirah Business Centre ( 8/9 – and was also on the market for sale by the name Ebony and Ivory Towers)

After have been mislead, deprived of their property rights by illegal actions and extortion  ,financial and mental extremely damaged by receiving several threats from Al Fajer Properties since 2008 upon 2009,  a criminal complaint was filed in Germany already in August  2009 against the CEO and President of Al Fajer Properties, Maktoum Hasher Maktoum Juma Al Maktoum. The witness hearings and investigations in Germany are still going on. I can be assumed that Maktoum Hasher Maktoum also mislead his lawyers during the period on which he used them for correspondence to commit this fraud.

Upon today Sheikh Maktoum Hasher Al Maktoum didn´t pay back a single Dent to the couple – nor did he deliver an apartment. Several attempts to end the case by asking to pay his full debts ( installments + compensation)  failed. Correspondence sent to Al Fajer Properties from December 2011 to March 2012 , remain unanswered.

No doubt Sheikh Maktoum of Al Fajer Properties is in full legal obligations to pay this debts he prefer to remain silent.


Posted in Al Fajer Properties, Denton Wilde Sapte, Developer Dubai, Dubai Fraud, Fraud Dubai, Jumeirah Business Centre, Maktoum Hasher Maktoum, Nakheel, Sheikh Maktoum Al Maktoum, Sheikh Maktoum Hasher Al Maktoum, Shuaa capital | Tagged: , , , , | Comments Off on Sheikh Maktoum CEO of Al Fajer Properties committed a fraud and did not pay his debts

The tragedy around former CEO of Al Fajer Properties Dubai Shahram Abdullah Zadeh goes on

Posted by 7starsdubai on July 10, 2014

Prag juli 2014 shahram zadeh Prague – The media took place in March 2014 when the police in Prague uncovered a huge tax fraud, which was assumed be organized by Czech businessman of Iranian origin Shahram Abdullah Zadeh. Reporter Dalibor Bártek discovered a number of interesting facts from the past of Zadeh, but also from its recent action in connection with another case.

On March 19, 2014, the Czech anti-corruption department initiated a comprehensive police raid. 160 policemen searched a total of 25 sites in several regions of the Czech Republic. Among other them, the luxurious presidential suite at the Hilton Prague, which was rented since years by the Czech businessman Shahram Abdullah Zadeh.

The result of the police raid was the imprisonment of fifteen people, including Shahram Zadeh. He was charged with tax evasion in connection with the importation of fuel from abroad in the Czech Republic in the context of organized crime.

In the case of a final judgment, the members of the criminal group expect a prison sentence up to 13 years. According to press reports, it should be the biggest tax loss of the last years. The sum amounts to about four billion euros. According to police and the ongoing investigation it is said, that the head of the criminal group was Shahram Zadeh.


continue reading in the Czech Media (use google English translation)


Posted in Al Fajer Properties, Dubai Property Fraud, Maktoum Hasher Maktoum, Shahram Abdullah Zadeh, United Arab Emirates, Vereinigte Arabische Emirate | Tagged: , , , , , , | Comments Off on The tragedy around former CEO of Al Fajer Properties Dubai Shahram Abdullah Zadeh goes on

Criminal cases against Dubai Developer-Proof of Fraud

Posted by 7starsdubai on October 3, 2010

Investors can file a criminal case against a developer only if the reason for developer’s default is criminal in nature and there is evidence to
prove it, according to a lawyer.
“Investors can file a criminal case against a developer on the basis that it has not started a project and/or opened an escrow account, but
only if the reason for developer’s default is criminal in nature, and there is evidence to prove it on its face,” Ludmila Yamalova, Legal
Consultant/Partner, Al Sayyah Advocates & Legal Consultants, told Emirates Business.
Raza Mithani, Senior Associate, Al Tamimi and Company, Advocates & Legal Consultants, said: In Dubai, a criminal case may be filed
where there is evidence of fraud. Failure to open an escrow account may, depending on the circumstances, constitute evidence of fraud.”
Tatjana Fuhr, Legal Consultant at Fichte & Co Legal Consultancy and KK Sarachandra Bose, Partner and Corporate, Commercial and
Contract Lawyer, Dar Al Adalah Advocates & Legal Consultants, agreed that a buyer can file a case against a developer who has not
started the project and collected funds without opening an escrow account.

read more

proof of fraud to file a criminal case against a developer in Dubai

Posted in Dubai Justice, Dubai Property Investors, Dubai Property legal, Fraud Dubai, Immobilien Betrug Dubai | Tagged: , , , , | Comments Off on Criminal cases against Dubai Developer-Proof of Fraud

Shahram Abdullah Zadeh vs Al Fajer Properties – A Dubai Deal called into Questions

Posted by 7starsdubai on December 5, 2009

original published Wall Street Journal


jbc-towersDUBAI — Amid the movers and shakers of this glittering city, Shahram Abdullah Zadeh cut a wide swathe. He cruised around town in a white Bentley and dined with royalty as his company ( Al Fajer Properties)  developed one of the emirate’s premier office complexes, the Jumeirah Business Centre Towers located at the Jumeirah Lake Towers district in Dubai.

But in February 2008, a phone call from Dubai’s state security effectively ended it all.

Hauled in and locked up for 60 days, Mr. Zadeh says he was interrogated about his role in Dubai’s freewheeling real-estate sector and his business relationship with the brother-in-law of Dubai’s ruler, Sheikh Mohammed bin Rashid Al Maktoum. When released, Mr. Zadeh says he had been frozen out of the real-estate company he had helped start.

Mr. Zadeh’s experience, compiled though court and company documents, offers a rare window into the murky business world that helped transform this city from an empty coastline into a metropolis. It also may offer a cautionary tale for investors lured to the city, which bills itself as the modern face of a new Middle East. Dubai is one of seven semi-autonomous emirates that make up the United Arab Emirates.

The U.S. government and human-rights groups have long criticized the judicial system in the U.A.E for a lack of independence and oversight. In the good times, investors didn’t fret much about these shortcomings. Now, some of the same deals that helped build Dubai are coming undone — in particular, a tradition of off-the-book business partnerships between Emirati citizens and elite expatriates like Mr. Zadeh, who was born in Iran.

Shahram Abdullah  Zadeh claims his detention came after a business dispute with his partner at Al Fajer Properties, Sheikh Hasher bin Juma’a Al Maktoum and his son, Sheikh Maktoum bin Hasher Maktoum al Maktoum. Both men are members of the extended family of Dubai’s ruler, Sheikh Mohammed bin Rashid Al Maktoum.

Mr. Zadeh alleges the two men took control of the firm while he was in custody, according to a lawsuit he filed with Dubai’s public prosecution office last year.

Mr. Zadeh has not been charged with a crime.

But for the past year, authorities have held onto his passport, making it impossible for him to travel or find work.

“I used to believe in the miracle of Dubai. But now I see it all as a mirage,” said Mr. Zadeh, 37. Sheikh Hasher denies any wrongdoing. He says he was not responsible for Mr. Zadeh’s jailing and that he removed him from the company because Dubai authorities said he had offered bribes, an allegation Mr. Zadeh denies.

Some of Mr. Zadeh’s claims are impossible to verify independently. His only copy of the real-estate partnership agreement is missing, and official company documents show the Sheikh Hasher as sole owner. Dubai’s security services, the public prosecutors’ office and the Dubai ruler’s court all either declined to comment or didn’t respond to repeated requests for comment.

Last fall, the Emirates’ Human Rights Association, a government body, wrote to authorities asking for an explanation about why Mr. Zadeh’s passport was being held. The group did not receive any response, according to his lawyers.

Shahram Abdullah Zadeh grew up in Dubai, attending school with the children of some of the city’s top families. He managed his family’s hotel and retail holdings and decided to go into business himself in 2000. Real-estate development was off limits to foreigners, even longtime residents like himself. So, he turned to a common practice — a silent partnership with a U.A.E. citizen.

Typically, such partnerships involve an Emirati acquiring a business license and then granting his foreign partner management control. The foreigner either pays an annual fee to the Emirati or the two share profits. The terms are set forth in a parallel set of documents, separate from those submitted to the government. Such contracts are so common that courts here have upheld them in disputes, according to commercial lawyers here.

In 2004, an old friend of Mr.  Shahram Zadeh’s father brokered an introduction with Sheikh Hasher Maktoum bin Juma al Maktoum. The Sheikh owns Al Fajer Enterprises, a conglomerate that includes a construction and contracting arm.

In affidavits filed with Dubai’s prosecution office, Mr. Zadeh contends that he and Sheikh Hasher Maktoum bin Juma Al Maktoum verbally agreed to a partnership, signing a contract on Feb. 1, 2006.

The partnership, Mr. Zadeh says, established the two men as co-owners of Al Fajer Properties. The men would split profits equally and would invest equal amounts of capital. The contract named Mr. Zadeh as chief executive.

shahram-zadehShahram Abdullah Zadeh  provided $335,000 in start-up capital, and he invested another approximately $30 million in the company, according to bank documents reviewed by The Wall Street Journal.

Mr. Zadeh’s affidavits contend Sheikh HasherMaktoum bin Juma Al Maktoum didn’t contribute any capital. Sheikh Hasher denies the equity partnership ever existed.

Business took off quickly.

One of Al Fajer’s biggest projects was a planned $750-million development of five office towers,the Jumeirah Business Centre Towers,  set just inland from Dubai’s man-made, palm-tree-shaped island. Shahram Zadeh bought three of the five plots for the 40-story towers with his own money, according to financial documents. With investors lined up for units, he then awarded $215 million worth of contracts to the construction arm of Sheikh Hasher’s Al Fajer Enterprises, according to company documents.

But by late 2007, the contractors were behind schedule, according to company documents and former employees. Al Fajer Properties was facing fines for the delays, and buyers were starting to complain.

Sheikh Maktoum Hasher bin Juma al Maktoum wanted payments to continue to his companies, but Mr. Zadeh claims he said no.

The sheikh complained in a series of text messages that unless  Shahram Abdullah Zadeh released more cash, the Sheikhs contracting companies would go bankrupt.

On Feb. 21, 2008,  Shahram Abdullah Zadeh claims, he received an unusual phone call from Dubai State Security, asking him to come in that evening for a talk. When he arrived, , he claims that police blindfolded him, put him into a sport-utility vehicle and drove him to a detention center.

In the eight weeks he was jailed, Shahram Abdullah  Zadeh says he was never accused of a specific crime or shown an arrest warrant. Instead, he says, he was repeatedly interrogated about his personal life and Al Fajer’s operations, and gave his interrogators the combination to the company’s safe after they asked for it. “They told me that if I did not cooperate that they would ruin me,”  Shahram Abdullah  Zadeh said.

Mr. Zadeh contends the only copy of his partnership agreement with Sheikh Hasher Maktoum bin Juma Al Maktoum was in the safe. Former employees of Al Fajer say the company safe was emptied while Mr. Zadeh was jailed.

On March 6, Sheikh Hasher’s son, Sheikh Maktoum bin Hasher Al Maktoum, was named the new chief executive of Al Fajer Properties. Sheikh Hasher hired international accountants to audit Al Fajer Properties  books, according to former employees. He then presented the findings to employees and select clients, accusing Shahram Abdullah  Zadeh of embezzling funds. Phone calls and emails sent to lawyers and accountants of Al Fajer Properties were not returned.

Sheikh Hasher says Mr. Zadeh stole money from him, but the Sheikh did not provide evidence, or the audit, to back his claim. Mr. Zadeh denies it.

Prosecutors refused to investigate the case, citing an order from Dubai’s attorney general, an official appointed by the ruler.

In November 2008 , Shahram Abdullah  Zadeh tried one last option. He approached the ruler’s diwan, or court administration, and asked for mediation from Sheikh Mohammed bin Rashid Al Maktoum himself.

So far, there has been no reply.

read more about ….

read also from The Independent Dubai Property Scandal claim emerges amid media blackout – Al Fajer Properties

read also  Criminal  complaint filed in Germany against Sheikh Maktoum Hasher Al Maktoum Al Fajer Properties

Posted in Al Fajer Properties, Dubai Fraud, Jailed in Dubai, Jumeirah Business Centre, Prison Dubai, Shahram Abdullah Zadeh, Shahram Zadeh, Sheikh Hasher Maktoum Al Maktoum, Sheikh Maktoum Hasher Al Maktoum, Torture Dubai, Torture UAE | Tagged: , , , , , | 4 Comments »

Project Maritim Hotel Dubai Land – DUBAI 1000 Hotel Fund – Arrest Warrant against Georg Recker

Posted by 7starsdubai on December 1, 2009

DUBAI 1000 Hotel Fund – Warrant of Arrest against Georg Recker

Based on research by German newspaper “Westfälischen Allgemeine”, since a couple of weeks a warrant of arrest has been issued by Dortmund Court of Justice (Germany) against German Georg Recker (36), initiator of “Dubai 1000 Hotel Fund”.

For Recker an international quest is conducted, assuming that he is staying since longer time now in Dubai. Recker is under suspect of embezzling from German investors an amount of approx. 25 Million Euros.
State Attorney Dr. Ina Holznagel from Dortmund Public Prosecution did reject on request any information since when the warrant is already issued. But she confirmed that prosecution against Gerog Recker is ongoing since early 2008.

Meanwhile prosecutors have been able to freeze five bank accounts in Germany with deposits in the amount of roughly 1Million Euros. A drip on hot stone with view to approx.
25 Million Euros collected
by Recker from more than 900 investors.

Up till now, just 2 claimants took seizing action against these accounts: one investor and one former employee. “For us it will always remain indistinct, how lame especially German investors are acting if they face fraud and embezzlement with regards to their own moneys,” says Martin Kraeter, Principal of KLP Group Emirates.

Law firm KWAG from Germany represents just 50 out of 900 investors with claims of approx. 1Million Euros. They try to seize blocked funds now, as long as there are remaining funds on the accounts.
All other investors seem to preferably follow Recker’s lawyer Mr. Eckehart Heberlein from Munich: Heberlein seriously states frequently that the investment object of the fund – a MARITIM Hotel in Dubai Land – will soon be built and that there is constant progress on the construction site . . .

Recker‘s “Group of Companies” in Hamm (Germany) already has been restructured in October 2009: New CEO of “Travel-Dubai AG” is now since 22.10.2009 Mr. Ben Neuendorf (45). He is seen as Recker’s right-hand – by this prosecution is also running against him.
Recker himself is not reachable, of course. Remaining employees in his „Enterprise Group“ back in Germany are advised not to give any kind of relevant information.
Source (in German language)

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Fraud in Dubai and the Gulf Region – Just the tip of the iceberg

Posted by 7starsdubai on November 4, 2009

source The National

It is more than a year since Dubai launched a highly publicised clampdown on corruption, which led to the arrest of several executives from some of the emirate’s top property developers and financial institutions.

But while Dubai grabbed the international headlines, it represented just the tip of the iceberg in a region that has been identified as a hot spot of corruption.

Kroll, an international risk consultancy, said last week the Middle East was the world’s only region to see a rise in fraud in the past year. It singled out corruption and bribery as the single largest threats.
“For seven out of 10 cases of fraud, it had the highest incidence of any region, including bribery and corruption,” Kroll said. Average financial losses from corruption doubled to US$11.5 million (Dh42.2m) this year from $5.6m last year, it said.

read more of this article….

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Herve Jaubert fled Dubai dressed as a woman

Posted by 7starsdubai on August 18, 2009

source Arabian Business

A former French special agent who worked for Dubai World has spoken of his anger at being convicted in absence of defrauding the company out of millions of dirhams – a charge he strongly denies.

Herve Jaubert told Arabian Business of a carefully planned escape from Dubai aboard a rubber dingy and dressed in a burqa to evade police using skills he developed as a spy.

The former French naval officer, who is now living in the United States, said he is not worried about being tracked down to face his five-year prison sentence because he can prove his innocence.

“I deny everything,” he told Arabian Business during a telephone interview. “When I saw that I was convicted in absentia I was totally outraged.  But no matter what the truth is going to come out eventually.”

One way he hopes to be able to do this is through his book outlining the story of his escape, which is due to be published in October.

Jaubert told Arabian Business he decided to flee the country last year after his passport was confiscated by police and he was fired by Dubai World.

“In Dubai, if you don’t have a passport and you don’t have a job you cannot survive,” he said. “I found myself in this situation. So instead of fighting it, I told the auditors I would pay them back. I did not sign anything, but I played the game.”

Meanwhile he was planning his escape. Jaubert sent his wife and children back to Florida where they had all been living before moving to Dubai in 2004, and once they were gone he went into hiding.

“Once I was alone in Dubai then I turned to what I used to do before as an intelligence officer.

“A friend would rent a room for me in a hotel with his passport so my details would never show up. I would stay in the hotel for three days and then change.

“I bought a sail boat, and then I bought a rubber dingy and I escaped on the dingy. When I was a secret agent for my country I used to do that – go in and out of countries on a rubber dingy – because no one pays attention to a rubber dingy.”

Jaubert left from a beach in Fujairah early one morning after sabotaging the only coast guard boat in the area to make sure no one could follow him.

He spent six hours aboard the rubber dingy before meeting his friend, who had sailed his boat into international waters, and the pair headed to India on a journey that took eight days.

“I’m a naval officer, so at that point I knew what I was doing,” he said.

“When I was a secret agent I was a ghost, but here it was different, I was not a ghost anymore. I decided to disguise myself as a woman and then I became a ghost.

“When you are covered from head-to-toe in an abaya and veil nobody talks to you, nobody looks at you. Wearing the abaya nobody bothered me, it’s like I never existed.

“That’s the best disguise you can find because even a police officer can not talk to you.”

Jaubert was sentenced to five years in jail and fined AED14m by Dubai Criminal Court at a hearing in June at which he was not present.

The court was told that Jaubert’s company, Seahorse Submarines, had bought equipment worth AED11.8m for Exomos, the submarine division of Dubai World, but that it did not all arrive.

Jaubert had a contract with Dubai World to build two submarines, but prosecutors told the court that when the vessels were delivered they were incomplete and faulty. He wrote to Dubai World and agreed to settle the matter by paying an initial AED3m, but he fled the country before handing over any money.

My book is going to come out and people are going to know the true story and then I will put it behind me,” Jaubert said.

He is even confident that readers in Dubai will be able to get a copy.

“There’s no way this book is going to be available in Dubai in the open, but I’ve found a way. There will be some tricks, if you want. The book will be disguised. If you order the book you might receive a book on flowers or furniture, but it’s just a cover,” he said.

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Al Fajer Properties Case – Zadeh says he’s a victim of a system in which the rulers can manipulate police and the courts to protect their business

Posted by 7starsdubai on July 19, 2009

Al Fajer Properties Dubai 2009 , Sheikh Maktoum Hasher Maktoum Al Maktoum

In this Gulf city-state, two things have long been untouchable: business interests and the ruling family. However, an attempt to sue a member of the family over an alleged financial swindle is a sign of how much the economic crisis has rattled business as usual here.

Shahram Abdullah Zadeh accuses the brother-in-law , sheikh Hasher Maktoum Al Maktoum, of Dubai’s emir illegally of taking over his real-estate firm Al Fajer Properties and having him detained by police to help the swindle.

Zadeh, a 37-year-old Iranian national who has lived in Dubai all his life, brought a civil case against the brother-in-law and his son Sheikh Maktoum Hasher Maktoum Al Maktoum to get his firm Al Fajer Properties back, a rare move. Even more surprising, shrahm Zadeh tried to raise criminal charges, but that step went nowhere because prosecutors rejected it.

The case has raised questions about whether Dubai really is what it claims to be: A boomtown where international businessmen can safely invest and turn a profit; or rather, a nest of cronyism and connections where royal blood can still trump entrepreneurial effort.

Such questions were largely ignored by everyone – businessmen and politicians alike – as long as the cash was rolling in during Dubai’s stunning expansion over the past decade. But now the emirate has hit the skids in the world financial crisis.

“During the boom, Dubai’s shortcomings were glossed over, but now that the economy is struggling, it’s becoming a different story,” said Christopher Davidson, an author of two books on the United Arab Emirates and a lecturer at Durham University in Britain.

Dubai’s emir, Sheik Mohammed bin Rashid Al Maktoum, led the emirate’s vast financial ambitions. But business ran far ahead of the effort to modernize legislation in what remains a traditional Arab monarchy, where the ruler and his family hold final say.

Now the government has been trying to rein in some fast-and-loose business practices. About a dozen former executives are in custody for various investigations. Some have close ties to the government, but none of those in custody are related to the ruling family.

Zadeh’s case goes farther – breaking to taboo of questioning Dubai’s leadership. Zadeh says he’s a victim of a system in which the rulers can manipulate police and the courts to protect their business.

“If Dubai cannot provide security for foreign investors, they might as well switch off all the lights,” he said.

Attempts over the past weeks by The Associated Press to contact the brother-in-law, Sheikh Hasher Maktoum bin Juma’a Al Maktoum, were unsuccessful. Hasher Maktoum Al Maktoumand his company attorneys did not return repeated phone calls or respond to interview requests.

In the first session of Zadeh’s civil case, Hasher Maktoum Al Maktoum and his lawyers failed to appear. In the second a week ago, his lawyer asked the court for more time to study the allegations. The case is to resume May 4.

Zadeh and the Sheikh Maktoum Hasher Al Maktoum went into business in 2004. Foreigners are allowed to deal in property only after finding an Emirati sponsor to officially register a company. The usual practice is for the Emirati sponsor to give his signature for an annual fee or profit share. Several members of the sprawling ruling family are involved in such deals.

Zadeh set up a firm, Al Fajer Properties, and was chief executive while Sheikh  Hasher Maktoum Al Maktoum held the trade license. The firm was profitable and is now worth about $2 billion, according to Zadeh. But the partnership soured over delays in building a commercial tower, Juemirah Business Centre.

Zadeh said in an affidavit to Dubai’s attorney general that he was arrested in February 2008 and held for 60 days. He says he was never charged with any crime but was questioned over his business – including the combination of his safe.

While Zadeh was in detention, Sheikh Hasher Maktoum Al Maktoum took over the company Al Fajer Properties by appointing his son Sheik Maktoum Hasher Maktoum Al Maktoum as chief executive, ousting Zadeh, according to Zadeh’s filing. When he was released, Zadeh says he found his office safe had been cleaned of documents showing he was the owner of Al Fajer Properties and Hasher Maktoum Al Maktoums partner.

Zadeh also says police tried to push him to sign a document saying he had no connection to Al Fajer Properties. He submitted to the court

Al Fajer documents listing him as CEO and transactions that his lawyers contend show he was the sole investor. The Associated Press was given a copy.

Sheikh Hasher Maktoum Al Maktoum  “thought he could do it all because he’s a Sheik,” Zadeh said.

Police refused to comment on whether Zadeh was detained. Shahram Zadeh says they continue to hold his passport and so far he has had little luck pushing his claims.

He submitted a criminal complaint but the attorney general refused to investigate, giving no reason.

Zadeh then filed a complaint directly to Dubai’s emir, who holds what is called the Ruler’s Court. Residents can bring to the emir what they believe are injustices unaddressed by the courts – from disputes over money to wrongful deaths.

Zadeh says he has received no response.

see also: Terahn Times

More: Al Fajer Properties DubaiJumeirah Business CentreEbony Ivory Towers Dubai

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Dubai Lawyer Samir Jafaar: ‘Ex-UAE Minister of State Had No Intention to Cheat’

Posted by 7starsdubai on May 10, 2009

source KhaleejTimes by Zawya

08 May 2009


The verdict in the fraud case filed against former UAE Minister of State Dr Khalifa Bakhit Al Falasi will be pronounced on May 28 by the Court of Appeals.

Both defence lawyers of the ex-minister, his son and the other two defendants, Samir Jaafar and Abdelmonem Suwaidan, stressed in their arguments that the former minister did not swindle the Lebanese businesswoman (the plaintiff). They pleaded that she was aware of the legal status of both her late brother and Dr Al Falasi before she signed the disputed settlement bond in which she relinquished her 49 per cent shares in the Global Information Technology Company that she inherited from her brother.

“The audit reports and financial and budget statements of the company are some of the evidence that she was aware of the business relationship between the minister and her brother,” Jaafar said. “What sustains our pleas is that my client (the ex-minister) was running the information company in due course when the plaintiff’s brother was in the US for health reasons. Dr Al Falasi signed personal banking security bonds which is a clear revelation of his good intentions,” counsel Jaafar pleaded.

Jaafar added, “In the documents we had access to, there was one particular contract signed by the ex-minister and the plaintiff’s brother saying that the latter collected a monthly salary of Dh2,000. This proves that my client is a real partner in the company.”

Jaafar pointed out that the plaintiff collected Dh28 million for her part of the family shares which does not mean that she was victim of cheating.

The 51-year-old ex-minister pleaded not guilty to the charge of cheating the Lebanese businesswoman to unlawfully take the Global Information Technology Company, she inherited from her brother by pretending he was a partner with 51 per cent of the shares, rather than a paid sponsor.

He pleaded not guilty to the fraud and breach of trust charges. His son, the American director general of the company and the Indian financial manager also pleaded not guilty to the charge of criminal complicity in defrauding the plaintiff.

The Court of Misdemeanours awarded on February 23 the former minister two years in jail, as he was found guilty of fraud. Dr Al Felasi was acquitted of the charge of breach of trust.

Defence lawyer Jaafar also highlighted in his pleas a letter from the Economic Department proving that Dr Al Falasi was the original owner of the company since 1995 and that late brother joined in as a shareholder in 1996.  The former minister’s 26-year-old son was acquitted in February from the criminal complicity charge.

The company’s director general and the financial manager were awarded two years in jail each for assisting in swindling the plaintiff. They would be deported after serving their jail terms, the court ordered. The civil case was referred to the relevant court whereas the plaintiff is claiming Dh500 million in compensation.

The Lebanese woman is also prosecuting the former minister for hiding from her the fact that her late brother was investing in a real estate in Al Qusais area.

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‘Egypt’s Madoff’ faces trial in UAE

Posted by 7starsdubai on May 7, 2009

source TheNational

ABU DHABI // Nabil al Boushi, an Egyptian businessman sentenced in absentia to 15 years in jail in his home country after he was convicted of fraud, will have to stand trial in Dubai before any thought can be given to his extradition, the Ministry of Justice said yesterday.

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Four charged with fraud in UAE-Europe VAT case

Posted by 7starsdubai on May 7, 2009

source The National

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Interview Malika Karoum in Dubai

Posted by 7starsdubai on December 11, 2008

Interview Malika Karoum Dubai 2008

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