The special judicial committee in charge of settling claims against Abed Al Boom, the former property magnate convicted in 2011 of embezzling almost Dh1 billion from thousands of investors in the same year, said that more than Dh100m in claims will be distributed in the first quarter of next year.
Al Ittihad, The National's Arabic-language sister newspaper, reported that 3,439 creditors will receive between Dh100m and Dh120m, equivalent to 20 to 25 per cent of the total due after deducting previous payments.
Al Boom was convicted on several counts of fraud in Dubai three years ago and was sentenced to more than 900 years in jail. The convictions followed complaints in 2008 related to property investments. Al Boom spent investors’ money on parties, boats and luxury cars. Only 1 per cent of the stolen money was recovered and seized by authorities.
Judge Jamal Al Jaberi, deputy chairman of the committee, said that the Dh100m had been raised by auctioning 90 per cent of Al Boom’s real estate this year, in addition to selling cars and special number plates that he owned.
The sale was handled by an auction house accredited with Dubai Courts, he said, noting that the committee successfully chose the timing of the auction in line with an increase in property prices to the benefit of creditors.
The door is still open to ongoing legal actions against Al Boom, as auctioning his assets had not covered the dues and rights of claimants totalling Dh500m to Dh600m.
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