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Dh60m in cheques being paid to Al Boom's creditors

Dubai - The tycoon was found guilty of squandering the hundreds of millions he collected from investors on personal lavish lifestyle.

A judicial committee, assigned with liquidating the assets of Emirati business tycoon Abed Al Boom to fulfil his financial obligations towards thousands of investors, has revealed it started distributing Dh60 million worth of cheques to those whose entitlement has been proven.
The judge at the court of appeals and chairman of the committee, Saeed Hilal Al Zaabi, said the second phase of reimbursement has begun and notifications of individuals with financial claims files were being sent to inform them about the cheques.
Judge Al Zaabi pointed out that only 10 per cent (out of 20 per cent) of the amounts of claimants' entitlement have been proven. He added that the committee was providing the public prosecution with statements showing names of investors who had approached the committee for financial claims. He pointed out that the liquidated and sold-out assets of the businessman were not sufficient to settle all his financial obligations.
The tycoon was found guilty of squandering the hundreds of millions he collected from investors on personal lavish lifestyle of parties, yachts and fancy luxury cars.
The Court of Misdemeanours, in 2011, sentenced Al Boom, owner of Al Boom Holding, to 923 years in prison on 3,695 counts.
He was given a three-month imprisonment for every count and was cleared of 11 counts.
In the case, known as 'Al Boom bogus portfolio', he was convicted of embezzling more than Dh900 million collected from more than 3,700 depositors for investment in real estate. The verdict concluded that the dividends had been cut from the depositors' funds and were not the result of serious investments.
The Public Prosecution referred the accused to the court following a decree by His Highness Shaikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, to form a judicial committee to liquidate the assets of Al Boom and pay up his debts.
mary@khaleejtimes.com

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