Company chief jailed for failing to pay $20m

Businessman accused of looting Al Boom Holdings and cheating 3,700 investors 'lived a life of parties, boats and luxury cars'.

DUBAI // The chief executive of Al Boom Holdings was jailed yesterday after again failing to provide proof he paid a US$20 million deposit (Dh73.5 million) to the court treasury. The Emirati businessman is accused of embezzling almost Dh1 billion and charged with breaching the trust of 3,700 investors. He was denied bail at the Dubai Special Tribunal Court yesterday.

His lawyers said Emirates Islamic Bank, which holds the treasury account for the company's liquidation committee, had not responded to requests and that the court should adjourn until they do so. Prosecutors argued Abid al Boom had repeatedly promised to pay and failed to do so.  On June 27, one of Mr al Boom's three lawyers, Ali al Falasi, presented the court with bank transfer documents stating $20m had been paid. He said the deposit could be expected by the court's treasury within 96 hours.

But his lawyers were ordered to return to court on August 8 after prosecutors said the money still had not been received. At the August 8 hearing, Mr al Boom's defence team said the payments had been made to the liquidation committee's account through various channels, making it difficult to present the records. Presiding Judge el Saeed Bargouth then ordered an investigation into the liquidation committee's accounts to learn if any monies had been deposited.

The hearing was adjourned and Judge Bargouth warned, "If no payments are made by the next hearing [Mr al Boom's] bail will be revoked." At yesterday's hearing, Mr al Boom was accompanied by three men who claim to be his financiers. Speaking to The National after the hearing, the men said Mr al Boom's incarceration could jeopardise settlement agreements.  "If he is remanded into custody, we will not be able to get funding. We have a resettlement plan that could finalise the situation in six weeks," said the men, who said they were independent consultants who provide financing through banks and private investors.

Last October, a liquidation committee was appointed by special decree of Sheikh Mohammed bin Rashid, Vice President of the UAE and Ruler of Dubai.  The committee conducted an audit of the accounts and ordered Mr al Boom to repay the US$300 million he allegedly embezzled. Public prosecutors earlier presented documents to the court stating that Mr al Boom spent most of the monies at issue on parties, boat purchases and luxury cars, leaving only one per cent of the original amount embezzled to be seized.

The prosecutor Younis al Baloushi said Mr al Boom and his accomplices had acted like animals after cheating 3,700 investors of their hard-earned savings. Mr al Boom bought 53 luxury vehicles, including Bentleys for himself and his managers, the court was told. He also purchased special number plates, a luxury yacht and two other boats - one of which was used exclusively for parties and receptions - and donated millions to football clubs.

Judge Bargouth adjourned the case to October 3. @Email:[e-mail]