Deyaar’s ex-CEO loses appeal, jailed for 25 yrs

dubai — The Dubai Court of Cassation has upheld two convictions against the former CEO of Deyaar in graft cases, in which he was sentenced to 25 years in jail. The two rulings of Dubai’s highest court are final and irrevocable.

In one case, the US citizen of Lebanese origin has had his 15year jail sentence upheld over charges of misuse of power and Dh56.3 million fraud. Two other defendants (senior staff of a private realty firm in the US) have each had their 15-year jail sentence upheld in absentia over criminal complicity and fraud charges.

According to prosecution documents, the 52-year-old ex-CEO abused his powers at Deyaar back in November 2007, and committed many financial irregularities. He submitted to the chairman of the board a misleading feasibility study on the purchase of a plot in Houston, Texas, USA, causing the property developer a loss of Dh56.3 million.

The three convicts were ordered to pay Dh56.3 million in fines and also to return the same amount to the plaintiff.

In the other case, the Court of Cassation upheld a 10-year jail sentence against the former CEO. Two other accomplices (an Indian and an Argentinean) had their 10year jail term upheld. The court ordered the convicts to return Dh35.5 million to the company and pay the amount in fines.

Apart from embezzling millions of dirhams, the former CEO was also accused of damaging Deyaar’s interests with losses of more than Dh21.5 million through private bargain deals he had made with contracting companies. He caused Deyaar to incur huge losses by giving discounts to some customers giving them priority over others who were ready at the time with cash to buy units at the market value.

He is accused of forging documents to raise the price of some projects by manipulating the prices of units and pocketing the difference. In one project in Turkey alone, he misappropriated Dh6 million.

mary@khaleejtimes.com