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Al Boom's 3,695 depositors must wait for special committee's findings on tycoon's assets

By Bassam Za'Za'; Senior Reporter

Some 3,695 depositors must wait for findings of a special committee regarding Abid Al Boom's assets
Dubai: Some 3,695 depositors will have to wait for the findings of a special committee appointed to liquidate Emirati business tycoon Abid Al Boom's assets before recovering their investments.

The special committee that was formed upon a Ruler's decree issued in August 2009 is currently drawing up Al Boom's assets and properties in order to settle the debts of all depositors, Al Boom's lawyer Hassan Juma Al Raisi told Gulf News on Monday.

The lawyer's comments came shortly after the Dubai Cassation Court brought down the curtains on one of the biggest financial fraud cases in the emirate's history after suspending all legal action against Al Boom.

According to yesterday's judgement, Presiding Judge Mohammad Nabeel Riyadh upheld the appellate court decision of Al Boom case suspending all legal action against him and cancelled his 923-year imprisonment for defrauding 3,695 investors of nearly Dh900 million.

Fresh trial plea

Pronouncing the judgement in courtroom 22, Presiding Judge Riyadh rejected prosecutors' appeal to overrule the appellate court's judgement and send back the case for a fresh trial.

The Cassation Court confirmed the cancellation of Al Boom's conviction, suspended his punishment and halted all legal action against him.

"Since day one we argued that this case fell beyond the criminal court's jurisdiction as per the Ruler's decree. We were very clear that, as per the decree [issued on August 4, 2009], all legal cases and rulings against the debtor [Al Boom] should be suspended. Prosecutors issued the arraignment sheet at a later date. The Misdemeanour Court disregarded out argument and jailed my client," Al Raisi argued.

"However the Courts of Appeal and Cassation accepted our argument and suspended all legal action against Al Boom," he added.

The Misdemeanour Court had earlier sentenced Al Boom to three months in jail for each of the 3,695 counts of swindling and deception.

Appeal hearing

The Appeal Court suspended all legal action against Al Boom and referred the case file to be handled by the special committee that was appointed upon the Ruler's decree no 34 in 2009.

Al Boom's advocates Al Raisi and Dr Ali Al Falasi pleaded with the court to dismiss the case against their client citing 'jurisdictional issues'.

Al Raisi and Dr Al Falasi asked the court to refer the case to the special judicial committee contending that their client's acquittal or conviction would not affect the process of paying back the claimants' money.

Deliberating further on the judgement, Al Raisi told Gulf News: "According to the Cassation Court's judgement, all criminal charges have been suspended against Al Boom.

"Now the ball is in the pitch of the special committee that comprises two judges and an auditor from the Financial Control Department of the Ruler's Court. This case should have been handled by the committee since prosecutors started their investigations. For the debtors to recover their money, they will have to wait for the findings of the committee... the decisions and/or rulings of which are binding and irrevocable."

Acquittals upheld

The Cassation Court also upheld the acquittal of Al Boom's seven alleged associates including his brother, K.B., another Emirati, A.S., an Egyptian, M.I., a Malawian, M.M., and three Somali women. They were cleared of aiding and abetting the business tycoon for lack of evidence.

Defending his client before the court, Al Raisi argued that his client was rendered powerless since his bank accounts, assets, properties and title deeds had been seized by the committee.

The advocate maintained that Al Boom could have continued paying back the depositors' money "had his assets and accounts not been frozen".

Decree -- Judicial panel's mandate

On August 4, 2009, His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, issued a decree setting up a judicial committee to liquidate the assets of Abid Al Boom, owner of Abid Al Boom Management and Development Properties.

As per the decree, the committee is tasked with listing all properties and funds of the Emirati businessman and determining his financial situation and obligations while taking into account his rights.

The committee is also responsible for listing the names of depositors and the amounts they deposited. It must also detail any payments depositors may have already received from the debtor.

The committee is also charged with drawing up a final list of creditors and the money due to them.

The committee is also responsible for collecting money to pay back the creditors.

It is mandated to recover the debtor's funds and assign a lawyer to make such collections.

According to the decree, all legal cases and rulings against the debtor shall be suspended.

All decisions and rulings issued by the committee will be final and binding and are to be implemented by the Enforcement Department at Dubai Courts.

The decree comes into effect from the date of its issuance as published in the official gazette.

© Gulf News 2012