Casa Trading, a little-known US energy trader, is locked in a US$36 million (Dh132.22m) legal row with the Dubai Mercantile Exchange (DME) as it emerged that a partner of the American company was involved in a fake driver's licence ring in Chicago.
The DME cancelled several Casa memberships last year after it discovered a criminal conviction handed down to Frank Carbonara Jr, one of two senior partners in the American firm, was allegedly more serious than they were led to believe.
The DME in January filed a legal action in the Dubai International Financial Centre (DIFC) Courts to have the cancellations ratified.
But last Tuesday, Casa Trading filed a counter claim in an effort to have the memberships reinstated or to be paid $36m for lost income, expenses and other costs.
Mr Carbonara was arrested outside Chicago in 1991, when he was 18 years old, on charges of manufacturing fraudulent driver's licences, according to court documents and an article in the Chicago Tribune. He was later convicted of four counts of felony fraud after pleading guilty, records show.
Casa Trading alleges in its defence that Mr Carbonara fully disclosed his record to the executives of DME.
"As was subsequently disclosed to the DME in two meetings, Mr Carbonara had been involved in the manufacture and sale of fake IDs to other teenagers for the use of getting into bars and clubs," Casa said in its defence. "The process involved standing in front of a large imitation driver's licence and having one's photo taken with a Polaroid camera. The photo would then be cut to size and laminated to produce a fake ID."
Casa said that in a meeting with DME executives they assured Mr Carbonara the record was a "non-issue" and referred to him as a "kid making an innocent buck".
The DME claims that Mr Carbonara misled the exchange's membership committee about his criminal record and trading history in the US. In his application with the exchange Mr Carbonara said he had been charged with "having a fake identification card", DME alleged.
In its counter claim - which was filed by Lord Goldsmith, a former attorney general of the UK who is now the European chair of litigation at the law firm Debevoise and Plimpton - Casa said the DME was using the record to justify its termination of the memberships to the exchange.
"The DME's deliberate arbitrary, capricious and contract-breaching conduct has robbed Casa of its investment and caused it significant loss," the company said in court documents.
The alleged change in tenor from the DME towards Casa Trading happened after Chicago Mercantile Exchange acquired the New York Mercantile Exchange and became an indirect owner of about 25 per cent of the DME, Casa said.
"Soon after this change in control of the DME, the DME changed its attitude and approach to Casa," the claim said.
The DME said yesterday: "Casa had previously held off-floor memberships on the exchange and had, in addition, applied for floor membership. In the course of reviewing Casa's candidacy for floor membership, information was uncovered which led the DME to conclude that Casa did not meet the DME's criteria for floor membership and that Casa's existing off-floor memberships should be terminated.
"With respect to the rejection of the application for floor membership, Casa was afforded access to an independent appellate procedure under DME rules, pursuant to which, Casa's appeal was rejected ? Casa continues to dispute both the grounds of termination and the termination process itself.
"DME looks forward to bringing this claim to a swift and fair resolution, and is confident that the DIFC Courts will reach a decision which confirms that the DME acted in full compliance with the Rules of the Exchange in order to safeguard the integrity of the Exchange."
Lord Goldsmith did not respond to requests for comment yesterday.
Mr Carbonara's conviction has caused issues for him in the past. The National Futures Association (NFA), a US self-regulatory organisation for the futures industry, shows on its website that Mr Carbonara was initially denied registration because of the felony conviction.
However, in a subsequent meeting to hear his appeal he was granted registration provided that he not act as a partner, officer, director or branch office manager "of any person registered or required to be registered with the commission" or have supervisory authority of any other person registered with the NFA, the NFA says on its website.
Casa Trading was among the first traders on the DME. The company was incorporated on October 25 2007 with the purpose of investing in the exchange, according to Casa. The other equal partner was George Salerno. Casa obtained three off-floor memberships and invested in a special purpose vehicle called DME Strategico designed to increase liquidity on the exchange, Casa said in its counter claim.
The investors in DME Strategico "was and is known as 'Project Spyder'," the company said.
@Email:bhope@thenational.ae
UAE currency: the story behind the money in your pockets
Pharaoh's curse
British aristocrat Lord Carnarvon, who funded the expedition to find the Tutankhamun tomb, died in a Cairo hotel four months after the crypt was opened.
He had been in poor health for many years after a car crash, and a mosquito bite made worse by a shaving cut led to blood poisoning and pneumonia.
Reports at the time said Lord Carnarvon suffered from “pain as the inflammation affected the nasal passages and eyes”.
Decades later, scientists contended he had died of aspergillosis after inhaling spores of the fungus aspergillus in the tomb, which can lie dormant for months. The fact several others who entered were also found dead withiin a short time led to the myth of the curse.
Killing of Qassem Suleimani
The specs
Engine: 2.0-litre 4-cylturbo
Transmission: seven-speed DSG automatic
Power: 242bhp
Torque: 370Nm
Price: Dh136,814
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F1 The Movie
Starring: Brad Pitt, Damson Idris, Kerry Condon, Javier Bardem
Director: Joseph Kosinski
Rating: 4/5
COMPANY%20PROFILE%20
%3Cp%3EName%3A%20DarDoc%3Cbr%3EBased%3A%20Abu%20Dhabi%3Cbr%3EFounders%3A%20Samer%20Masri%2C%20Keswin%20Suresh%3Cbr%3ESector%3A%20HealthTech%3Cbr%3ETotal%20funding%3A%20%24800%2C000%3Cbr%3EInvestors%3A%20Flat6Labs%2C%20angel%20investors%20%2B%20Incubated%20by%20Hub71%2C%20Abu%20Dhabi's%20Department%20of%20Health%3Cbr%3ENumber%20of%20employees%3A%2010%3C%2Fp%3E%0A
The%20specs
%3Cp%3E%3Cstrong%3EEngine%3A%3C%2Fstrong%3E%201.8-litre%204-cyl%20turbo%0D%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E190hp%20at%205%2C200rpm%0D%3Cbr%3E%3Cstrong%3ETorque%3A%3C%2Fstrong%3E%20320Nm%20from%201%2C800-5%2C000rpm%0D%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3ESeven-speed%20dual-clutch%20auto%0D%3Cbr%3E%3Cstrong%3EFuel%20consumption%3A%3C%2Fstrong%3E%206.7L%2F100km%0D%3Cbr%3E%3Cstrong%3EPrice%3A%3C%2Fstrong%3E%20From%20Dh111%2C195%0D%3Cbr%3E%3Cstrong%3EOn%20sale%3A%20%3C%2Fstrong%3ENow%3C%2Fp%3E%0A
TOURNAMENT INFO
Opening fixtures:
Friday, Oct 5
8pm: Kabul Zwanan v Paktia Panthers
Saturday, Oct 6
4pm: Nangarhar Leopards v Kandahar Knights
8pm: Kabul Zwanan v Balkh Legends
Tickets
Tickets can be bought online at https://www.q-tickets.com/apl/eventlist and at the ticket office at the stadium.
TV info
The tournament will be broadcast live in the UAE on OSN Sports.
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
Top%2010%20most%20competitive%20economies
%3Cp%3E1.%20Singapore%0D%3Cbr%3E2.%20Switzerland%0D%3Cbr%3E3.%20Denmark%0D%3Cbr%3E4.%20Ireland%0D%3Cbr%3E5.%20Hong%20Kong%0D%3Cbr%3E6.%20Sweden%0D%3Cbr%3E7.%20UAE%0D%3Cbr%3E8.%20Taiwan%0D%3Cbr%3E9.%20Netherlands%0D%3Cbr%3E10.%20Norway%0D%3Cbr%3E%3C%2Fp%3E%0A
MATCH INFO
CAF Champions League semi-finals first-leg fixtures
Tuesday:
Primeiro Agosto (ANG) v Esperance (TUN) (8pm UAE)
Al Ahly (EGY) v Entente Setif (ALG) (11PM)
Second legs:
October 23
'Hocus%20Pocus%202'
%3Cp%3EDirector%3A%20Anne%20Fletcher%3Cbr%3E%3Cbr%3EStars%3A%20Bette%20Midler%2C%20Sarah%20Jessica%20Parker%2C%20Kathy%20Najimy%3Cbr%3E%3Cbr%3ERating%3A%203.5%2F5%3C%2Fp%3E%0A
PROFILE OF SWVL
Started: April 2017
Founders: Mostafa Kandil, Ahmed Sabbah and Mahmoud Nouh
Based: Cairo, Egypt
Sector: transport
Size: 450 employees
Investment: approximately $80 million
Investors include: Dubai’s Beco Capital, US’s Endeavor Catalyst, China’s MSA, Egypt’s Sawari Ventures, Sweden’s Vostok New Ventures, Property Finder CEO Michael Lahyani
Killing of Qassem Suleimani
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TERMINAL HIGH ALTITUDE AREA DEFENCE (THAAD)
What is THAAD?
It is considered to be the US's most superior missile defence system.
Production:
It was created in 2008.
Speed:
THAAD missiles can travel at over Mach 8, so fast that it is hypersonic.
Abilities:
THAAD is designed to take out ballistic missiles as they are on their downward trajectory towards their target, otherwise known as the "terminal phase".
Purpose:
To protect high-value strategic sites, such as airfields or population centres.
Range:
THAAD can target projectiles inside and outside the Earth's atmosphere, at an altitude of 150 kilometres above the Earth's surface.
Creators:
Lockheed Martin was originally granted the contract to develop the system in 1992. Defence company Raytheon sub-contracts to develop other major parts of the system, such as ground-based radar.
UAE and THAAD:
In 2011, the UAE became the first country outside of the US to buy two THAAD missile defence systems. It then stationed them in 2016, becoming the first Gulf country to do so.
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Plan to boost public schools
A major shake-up of government-run schools was rolled out across the country in 2017. Known as the Emirati School Model, it placed more emphasis on maths and science while also adding practical skills to the curriculum.
It was accompanied by the promise of a Dh5 billion investment, over six years, to pay for state-of-the-art infrastructure improvements.
Aspects of the school model will be extended to international private schools, the education minister has previously suggested.
Recent developments have also included the introduction of moral education - which public and private schools both must teach - along with reform of the exams system and tougher teacher licensing requirements.
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Mohammed bin Zayed Majlis