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Dubai, Aug 28: Investors in a sham finance scheme run from Dubai may have lost close to dhs1 billion with many cheated out of their life savings. Prosecutors revealed that 3,458 people have made official complaints against Emirati businessman Abid Al Boom, with the fraud so far worth dhs847,266,150.

The staggering sum is expected to rise as more duped investors come forward. Al Boom, the owner of Abid Al Boom Management and Development Properties, was arrested last month and is being held in custody, along with his brother and four others, while investigations and attempts to recover the money continue. All have been charged with fraud and theft.

The Attorney General has already ordered the freezing of all Al Boom’s assets and stopped shares being traded in his company. But so far only 15 per cent of the money deposited by innocent investors can be accounted for. 

A committee that investigated the company and its staff found it had collaborated with a number of foreigners to defraud investors and that its portfolio was bogus. 

Prosecutor Yusif Fuladh said that despite promises by the businessman that he would channel funds from overseas into the UAE to reimburse cheated investors, nothing has happened so far.  “People are ringing my office everyday asking for their money. Many of them are from low-income families and this has caused them many problems,” he told a news conference yesterday. “We have asked for help from a team of financial experts as we need to know where the money has now gone.”After his arrest Al Boom, whose company marketed itself as a major real estate development firm in Dubai and Sharjah, claimed: “I didn’t commit any crimes or violate any laws.”