Dubai expat loses Dh1.8 million after all four businesses hit by scammers at same time

Dubai business

An Indian businessman in Dubai, Mirza Iliaz Baig, has been left reeling after all four of his businesses fell victim to a series of scams within days, leading to losses exceeding Dh1.8 million. Baig, who manages Iveond Consultancy, IRA Travel and Tourism, and a general trading company with divisions in foodstuff and building materials, reported that his ventures were targeted by five fraudulent companies simultaneously.

Iveond Consultancy, which deals in laptops, LED TVs, and hard disks, suffered the heaviest blow, losing Dh958,970. IRA Travel and Tourism was defrauded of Dh648,000, and IRA General Trading and Foodstuff, which supplies onions and sanitary ware, faced losses of Dh200,315.

The fraudulent entities—Digital Genius Technologies, Daemo International, Noor Al Sidra Trading, Fair Words Goods Trading, and Wahat Al Rayan Trading—have since vanished, leaving behind a trail of unpaid dues and multiple complainants. Their common modus operandi involved purchasing goods and services using post-dated cheques that eventually bounced.

"I'm devastated," Baig said. "It’s surreal. I have four businesses in different sectors, yet they were all scammed. I don’t know how I can recover from these losses."

Baig’s troubles began when Digital Genius Technologies contacted IRA Travel and Tourism to book flight tickets and hotels worth Dh319,000. Initially, business appeared to be booming as Digital Genius provided post-dated cheques for the 15th and 30th or 31st, with a credit period of 30 to 45 days for each cheque, along with a security cheque of Dh200,000. However, only one cheque, worth Dh92,979, was honoured; the rest bounced.

During the same period, four other companies also utilized services from IRA Travel and Tourism. Documents obtained by Khaleej Times revealed that the travel firm processed 139 orders, including flight tickets to destinations such as London, Toronto, Los Angeles, Istanbul, Kolkata, and Kuala Lumpur, as well as five-star hotel stays and various experiences like desert safaris, Atlantis Aquaventure, and Burj Khalifa visits.

Four of the five fraudulent firms targeted multiple businesses owned by Baig. "I suspect they were linked since they approached us within a few days of each other and disappeared simultaneously. It seems they were working together," Baig said. Digital Genius, Baig’s largest debtor, also bought 40 Samsung screens, 100 tablets, 200 AirPods, 40 digital cameras, 20 projectors, 100 routers, and 30 MacBooks worth around Dh772,800, which were delivered to the company's warehouse.

Another businessman reported a loss of Dh110,000 after supplying cashew nuts to Noor Al Sidra Trading. “There are many of us in the same situation,” he said. Goods bought with these bounced cheques are typically sold for cash at lower prices. Baig has filed a police complaint and is now considering the future of his businesses. "It's a big financial blow. I may have to close one of my businesses," he said.

Meanwhile, another company, Max Clove Technologies, abruptly shut down its offices in Al Mina Street and warehouse in Al Quoz on May 13, disappearing with goods valued at over Dh40 million. SM, a trader in Dubai, said, "I supplied building materials worth Dh45,000. Nearly 100 individuals in our WhatsApp group are dealing with much larger losses, some as high as Dh1 million each."

Many others, like Mohammad Risath from Sri Lanka who dealt with Max Clove, shared their ordeals. Risath reported losses of Dh40,000 for laptops and other computer-related equipment due to dud cheques. Companies such as Asbis (Dh477,483), Acube Infotech (Dh145,000), Bright Apollo Technology (Dh200,000), Wbio Computer (Dh92,000), Advance Reader Technology (Dh75,000), and NAS Electronics (Dh40,355) are among the numerous firms facing losses after reportedly being hit by Max Clove Technologies.