Emirati lawyer stole Dh400m in football club deal, court hears

He took funds from an escrow account that received the proceeds from the nearly Dh900m sale, prosecutors said.

DUBAI // A prominent Emirati lawyer, partner and manager of a well-known law firm in Dubai denied committing more than Dh400 million in fraud involving the sale of an English football club, a court heard this morning.

The Dubai Court of Misdemeanours heard that KM, 45, embezzled the money from the former prime minister of Thailand, the businessman TS, through an escrow account set up for them by the law firm in 2008. Court records said the thefts occurred between September 18 and October 27, 2009.

KM, represented by his son and brother, sought bail, but the court turned down their request.

"I am a military justice chief and have a clean record, and by God's grace it will remain clean," KM told the court, adding that his firm had been operating for 30 years.

He said that he had kept all the amounts safe and did not take a single dirham.

"I did not breach trust, I honoured that trust," he said today.

His defence lawyers told the court TS does not have legal standing in the case because he was not the law firm's original client.

"Our client was UK Sports, not the claimant," one lawyer said.

According to the charges, KM, the legal representative of TS in a deal to sell Manchester City, embezzled 60 million pounds (Dh355m) from the sale, which netted 150 million pounds deposited into the escrow account.

Prosecutors said KM separately embezzled 15 million euros (Dh77m) from TS after TS asked him to receive a money transfer on his behalf and deposit it in a bank account in Montenegro.

Records show that KM persuaded TS to keep the funds in the law firm's bank account, then transfered it to his own bank account.

A third charge alleged KM took more than Dh39m from the fund and used it to buy a villa for himself in Emirates Hills. He is accused of spending Dh38m on the home, Dh380,000 for the real estate dealer, Dh620,000 in registration fees, and Dh495,926 as charges for his own law firm.

Prosecutors said all those funds were taken from the 150 million pounds involved in the club sale.

Additionally, he is charged with forging of two unofficial documents, a transfer application and a disclaimer, which he allegedly signed with the names of authorised executives at international firms.

He allegedly used those documents in an attempt to buy a Bombardier Global XRS Aircraft worth US$48 million (Dh176m). He requested the registration of the aircraft under the name of World White Investment Corp, which according to records, he owns.

His lawyers asked the court to assign an expert from the Financial Department at the Dubai Government to study the case.

TS faces charges of fraud in bribery in Thailand, which is seeking his extradition.

The club is owned by the Abu Dhabi United Group, led by Sheikh Mansour bin Zayed, the UAE Minister of Presidential Affairs. The group bought 90 per cent of Manchester City in 2008 and the remaining 10 per cent in 2009.

The next hearing is scheduled for April 7.