Dubai: BlueChip scam victims duped out of millions again by fake court officials

[Editor's Note: Bluechip Computer Systems LLC and Bluechip Real Estate Brokers are not associated with the BlueChip Group mentioned in the article.]

Victims of the infamous BlueChip Group investment scam were duped out of Dh3.5 million in a new and elaborate fraud scheme led by individuals posing as court and law enforcement officials. Here's how it happened:

On July 3, a group of 15 individuals gathered in a hotel conference room in Deira, Dubai, hoping for a glimmer of justice after falling victim to the BlueChip Group’s devastating investment scam. Among them were 11 people who had collectively lost millions of dirhams in the fraud. The scam, a complex multimillion-dirham operation, had devastated hundreds of investors earlier this year. The company’s owner, Ravindra Nath Soni, remains on the run despite an arrest warrant in Dubai.

At 6pm of July 3, four men entered the conference room, each presenting themselves with impressive credentials. The leader, claiming to be from Interpol, introduced his colleagues: a deputy, a CID representative, and a member of the Dubai Courts. All flashed badges, projecting authority as they spoke. For Preity Rakesh Phillips, one of the victims who lost Dh39 million to a company linked to BlueChip, the encounter felt legitimate. “They carried themselves with authority,” she said.

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“The lead officer instructed everyone to switch off their phones, saying it was standard Interpol protocol,” recalled VK, one of the attendees who had come from Al Ain. Preity's husband, Rakesh, added, “They even pointed to two patrol cars parked outside, claiming they were stationed there specifically for this meeting.”

For the victims, this meeting felt like their final chance at justice. However, what they believed to be an opportunity for recovery quickly turned into a carefully orchestrated scam. The alleged officials claimed to have identified Dh70 million worth of assets linked to BlueChip and promised to liquidate them under court orders to repay investors.

To ensure streamlined communication, a WhatsApp group was created to keep members updated on the progress of the case. It became the primary channel for sharing updates and instructions.

The instructions seemed straightforward: victims were to sign a power of attorney authorising Preity to represent them in court proceedings. As part of the arrangement, all funds were routed through Preity's account. A woman with a financial background was assigned to track expenses and incoming contributions, maintaining detailed records for transparency.

The officials claimed a court ruling would be issued in 21 days. As trust began to build, the group was told to pay five per cent of their claim as a “mandatory court processing fee and other legal expenses" to proceed with the liquidation. To reassure the group, the lead officer presented a receipt purportedly issued by the Dubai Courts, allegedly confirming the fee had already been paid on their behalf by a lawyer assigned to the case. The victims were then instructed to repay the lawyer via bank transfer. The following day, Preity transferred nearly Dh198,000 to the specified bank account. She said Dh33,000 was delivered in cash.

In the days that followed, the group received what appeared to be official court notices, confirming the seizure of assets and promising a payout. Any lingering doubts were quelled four days later when the victims received a notification that a court verdict had been issued: assets worth Dh70 million had been seized, and the proceeds would be distributed to them. “We were thrilled,” Preity recalled.

She was then advised to visit the Dubai Courts to sign an e-document to acknowledge the payout order. "The lead officer was already there," recalled Preity. "He took us to a coffee shop attached to the court building where a woman met us and took (our) signatures."

Soon, however, the operation began to expand. As word spread through the WhatsApp group, more BlueChip victims joined, eager to stake their claims and recover their losses. Within weeks, the original group of 12 grew significantly. The victims were told that they could also claim interest on their investments, but to do so, they would need to pay an additional 7.5 per cent of their initial investment.

Driven by the hope of regaining their money, many complied. "It seemed like a good deal, and greed overtook caution,” admitted SM, one of the victims.

As more victims joined the group, they pooled together substantial sums, with some contributing hundreds of thousands of dirhams. BAK transferred Dh251,590, while BC and BO contributed over Dh230,000 each. GC paid Dh128,245, and SP handed over Dh73,973. Many others chipped in varying amounts. Due to Preity’s daily account transfer limit of Dh99,000, a large portion of these transactions was handled in cash.

In just a few weeks, the total amount collected reached Dh3.5 million. An Excel sheet shared with Khaleej Times revealed that nearly 40 individuals contributed to the fund, bringing the total to Dh3.5 million.

But as the demands kept coming, doubts began to surface. Additional payments were requested for photocopies of documents, missing paperwork, and "unforeseen expenses".

The victims were then asked to validate their original documents to proceed with the disbursement. Rakesh recalled being instructed to create photocopies of each set of claims. “We spent Dh2,200 just on photocopies,” he said. “I remember lugging bags of papers and handing them over to a deputy of the lead officer.”

To expedite the process, victims were told to provide an additional Dh210,000 due to missing original documents. Preity said she and two other claimants pooled the amount and handed it over to the officer after other investors refused to contribute further. The officer promised that disbursement would happen within 48 hours.

Preity later received an email purportedly from the Dubai Courts confirming the progress, but the refund never materialised. Instead, the officers repeatedly delayed the disbursement, citing procedural requirements and a mandatory “cooling period". They demanded a “no-liability” letter and insisted that Preity close any joint bank accounts, claiming it was a necessary court requirement.

Desperate to comply, Preity and her husband closed a joint bank account they had held for 20 years, though the process took longer than expected. During this time, Preity was asked to pay an additional Dh100,000 to cover unforeseen expenses. “I had no choice,” she said. “I pawned my jewellery and even a gold Hanuman idol chain belonging to my husband to arrange the money.”

Meanwhile, a second WhatsApp group was created, with promises of a second tranche of payments — another Dh230 million worth of BlueChip assets purportedly identified by the authorities. This new development reignited hopes among victims, compelling many to remain committed to the process.

By end of September, Preity had wired all the money collected from the victims and even paid from her own account, including a Dh3.5-million blank cheque as required by the officers. Doubts began to grow as the officers introduced more procedural hurdles. Deadlines were repeatedly pushed back, and new demands for money were issued under the guise of “additional court requirements".

But as deadlines passed and further payments were demanded under the guise of “additional requirements", on October 20, the victims held a poll to decide whether to proceed or withdraw from the process. Eighteen voted to continue, while only one opted to step away.

The group began to unravel the truth: there were no seized assets, no court orders, and no Interpol officers. The entire operation had been an elaborate scam. The email addresses, receipts, and procedural documents shown to the victims were all fake.

The scam collapsed when one of the victims, a staff member of an airline, threatened legal action after paying over Dh165,000. A police investigation revealed that the so-called officials were nothing more than fraudsters, and Preity, who had been acting as an intermediary, was now under scrutiny as well.

Though Preity maintains that she was another victim, some of the individuals who had trusted her have accused her of complicity in the fraud. “She was the one collecting the money. How could she not know?” asked SM who contributed Dh56,000 and has since relocated to Oman.

VK, who paid over Dh350,000 and attended the hotel meeting, said he has also filed a police complaint. “We were all duped. It’s devastating,” he said.

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