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Dubai Islamic Bank fraud case begins

March 31, 2009
Country: UAE
Client(s): Dubai Islamic Bank (DIB)

Five men denied conspiring to defraud Dubai Islamic Bank out of $501 million (1.84 billion dirhams) in court on Monday in the biggest case in Dubai's crackdown on corruption to go to trial.

Two of three Britons are alleged to have forged documents to obtain an unsecured loan paid to their trade finance company after they bribed two Pakistanis who worked for the bank, UAE daily the National reported on Tuesday.

A third Briton, the former chief executive of Plantation Development in Dubai, is accused of assisting with the alleged conspiracy while two other charged men are on the run.

The prosecution described all seven as “greedy and envious men” who deserved the harshest penalty, the newspaper said.

The defence team asked the judge to dismiss the case against the defendants on the grounds that the court lacked the jurisdiction to try the case since the alleged fraud, uncovered by the bank in 2007,  took place in the UK.

The defence asked for more time to prepare their case and proceedings were adjourned until April 13.

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