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RAKIA Says may Take Legal Action Against Khoie

DUBAI - RAK Investment Authority, or RAKIA, said that it may take legal action against Frank Khoie, Chairman and CEO of Khoie Properties which had claimed in a statement on Sunday that it has filed a Dh2 billion law suit against RAKIA on 15 counts of fraud and extortion.

Khoie Properties did not say when and where the law suit has been filed and if a court has admitted its plea for formal hearing.

The developer said that the suit contends that RAKIA and its subsidiary Rakeen “engineered a deliberate attempt to defraud Khoie Properties in a scheme to take over the La Hoya Bay project.”

Separate lawsuits on behalf of the company’s European and American shareholders will be filed in London and New York, Khoie Properties said in the statement.

According to RAKIA, La Hoya Bay project, launched in 2006, went into trouble after cheques issued by Frank Khoie were dishonoured due to insufficiency of funds. In June 2009, Frank Khoie was sent by a RAK court to prison for three years and, in September 2009, a RAK court appointed developer Rakeen as judicial custodian of Khoie Properties, the project’s original developer, until the completion of the project.

“A possible legal action will be taken against Mr. Frank Khoie ....if he continues his false allegations and groundless media war,” RAKIA said in its 
statement.

“RAKIA and Rakeen are now joining efforts with several investors’ representatives to arrange for a meeting in the beginning of February to hear directly from the investors and agree on the way to move forward in materialising the La Hoya Project,” it said.

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