UAE – Laptops, cashew nuts, tyres, and towels – this assortment of goods collectively worth millions of dirhams was stolen in the latest trading scam, suppliers who lost their money revealed. According to the traders, the conmen set up an office in Dubai Silicon Oasis (DSO). “To gain our trust, the conmen made small upfront cash purchases,” said the traders, adding: “Once they secured bulk orders – backed by post-dated cheques – the conmen vanished without a trace last fortnight.”
“By then, we realised the cheques were worthless. The company’s offices and warehouses were abandoned, phones disconnected, and goods worth more than Dh12 million — including those towels — were gone,” the traders added. They noted that the Indian owner, believed to be the figurehead of the bogus company Dynamic, has reportedly fled the UAE, with the entire staff also unreachable.
“We trusted them because they paid Dh300,000 in cash upfront. They claimed they were servicing a fleet of vessels and placed bulk orders for crew supplies. Now, I’ve lost goods worth more than Dh800,000,” said a Dubai-based Pakistani businesswoman, who asked not to be named. She supplied pulses, almonds, rice, sugar, and cashew nuts. “We even visited their office. Everything seemed legitimate,” she recalled.
The scammers persuaded her to supply 60 metric tonnes of steel coil worth Dh200,000. “Initially, they asked for 100 metric tonnes and even inquired about diesel,” she added. “We’ve been hit badly, but it could have been far worse.”
Another victim, Wajeeh Shahid, owner of MMC Global Information Technology, is grappling with significant losses after supplying 76 Lenovo laptops and routers worth Dh267,000. He said: “The first cheque went through without a hitch, which convinced me they were legitimate.”
‘There could be more victims’
The victims shared a list detailing goods they lost. The list includes the names of 70 companies that fell prey to the racket. “This is all we’ve been able to gather so far. There could be more, as some companies chose not to report their losses,” said Jernaus Britto of Offsetfi Trading, located in DSO, not far from Dynamic’s office.
Britto, who supplied laptops and network cables worth Dh78,000, said he had done due diligence before dealing with Dynamic, which showed a valid trade licence and even shared audit reports. The ordeal left Britto reeling. He said: “I just started my business last April. This (scam) has been devastating.”
The scam has also affected sales representatives like Mohammad, who worked for a Chinese company that supplied the scammer with power tools worth Dh52,000. “I was fired. My company blamed me for not verifying the deal properly,” he lamented.
Among the victims is a Lebanese businesswoman who supplied 15,000 towels. “I am shocked that they would even target something like towels,” she said, adding, “the high-grade hotel supplies were worth Dh180,000. We deal with premium clients, and this has shaken our confidence in new buyers.”
The businesswoman requested anonymity. “In our business, trust is everything. If word spreads, it could harm our relationships with existing clients,” she reasoned. Another Pakistani businesswoman shared similar concerns. She said: “We are already suffering, and if the market finds out we’ve been hit, our creditors will hound us. It will only compound our troubles.”
An Emirati-owned travel agency in Abu Dhabi, meanwhile, lost Dh110,000 after Dynamic booked 25 flight tickets and a dinner buffet for 15 people at a Dubai hotel. “I dealt with a woman procurement officer from Kerala,” said a representative of the travel firm. “We were in touch until January 4, but when calls stopped and cheques bounced, I realised something was wrong.”
The victims have filed police complaints. Wajeeh Shahid, who reported the bounced cheques to Al Barsha Police Station, said the matter should be treated as wilful (intentional) fraud. “They never had any intention to pay,” he said.
Tracking the goods
Some business owners said they tracked their goods to a warehouse in Sharjah Industrial Area but were unable to access them as the premises’ owner claimed to have purchased the items. “Around 20 of us visited the warehouse recently but couldn’t get inside because the owner wouldn’t let us in. It’s a helpless situation, knowing our stolen goods are inside, yet we can do nothing about it,” said Shahid. He said the victims initially took turns to keep watch on the warehouse, hoping for a resolution.
Link to other fraudulent companies
Investigations revealed the audit reports used by Dynamic were prepared by a firm linked to other fraudulent companies, including Royal Luck Food Stuff and Harbine Middle East Marine Services. Both firms disappeared under similar circumstances after buying goods against post-dated cheques.
Last week, an undercover call was made to the audit firm, requesting an audit report. The firm readily agreed, and the conversation was recorded.
The latest scam follows a string of similar rackets previously reported, involving companies such as Digital Genius Technologies, Daemo International, Noor Al Sidra Trading, Fair Words Goods Trading, Wahat Al Rayan Trading, Max Clove Technologies, Max Star, Seven Emirates Spices, and Ultimate General Trading—all of which shut shop and disappeared after defrauding suppliers.
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