Source: KhaleejTimes

Two companies disappeared overnight with goods worth more than 12 million dirhams

Two companies have reportedly vanished from their Deira location this month, taking with them goods worth millions of dirhams, according to local businesses.

Future Star Electromechanical Works and Alpha Star Building Contracting took tonnes of building materials, 200 cartons of chicken, 250 laptops, hundreds of cellphones, and 11,731 metres of cables before shutting their shops.

The estimated loss from this 'disappearing act' has surpassed Dh12 million. The fraud was first uncovered when post-dated cheques issued by Future Star and Alpha Star began to bounce this month. When traders rushed to the companies' offices and warehouses, they found the doors locked, the entire staff and owners missing, and their phones switched off.

Deepti Singh (name changed), an Indian businesswoman, said she lost over Dh3.5 million worth of building materials. "I moved to the UAE a little over a year ago, hoping to build a better future for me and my family. Now, everything feels like it's fallen apart."

Two weeks ago, she sent her six-year-old daughter back to her home country. “I cannot afford to stay here any longer. This has been a devastating blow for us.”

Deepti said she conducted her due diligence before entering into business with the companies. “Since the time they reached out via email in early 2024, I visited their offices and warehouses several times, met their staff, and reviewed their audit reports and bank statements. Everything seemed in place. Future Star's managers told me the orders were for a project in Oman, while Alpha Star claimed it was for a client in Abu Dhabi.”

Between May 25 and July 2, she delivered 750 metric tonnes of reinforcement bars, galvanised iron (GI) pipes, sheets, and coils to warehouses in Sharjah Industrial Area. “The payment term was 30 days. Ideally, my first cheque should have been due on June 25, but Future Star, to whom I supplied first, requested to extend it by a few more days due to the Eid holidays. So, my first cheque from them was dated July 5, and from Alpha Star, July 4."

At 8.20pm on July 2, Deepti delivered the last orders to Alpha Star. However, when she returned at 9.30am the following morning to deliver some leftover material, she found the warehouse empty. She rushed to Future Star's warehouse, only to find a similar sight.

The scam comes on the heels of a similar racket reported by Khaleej Times last month, where five fraudulent companies — Digital Genius Technologies, Daemo International, Noor Al Sidra Trading, Fair Words Goods Trading, Wahat Al Rayan Trading, and Max Clove Technologies — vanished. Among those affected was Indian businessman Mirza Illiaz Baig, who saw all four of his business ventures hit within days.

Last year, a Khaleej Times report uncovered how Max Star, Seven Emirates Spices, and Ultimate General Trading pulled a similar scam to steal tonnes of avocados, onions, cardamoms, and beef worth millions.

2024-07-23 13:00:35

Reviews

Please submit your comment.

Your comment has been submitted!

It will be displayed after the approval of admins.

No comment submitted yet

Economic

Two companies disappeared overnight with goods worth more than 12 million dirhams

Reviews

Please submit your comment.

To do this, please login first

news 2

Enjoy true exclusivity with this credit card

The ‘1 Billion Meals Endowment’ tower will be built on Sheikh Zayed Road and will cost Dhs800 million.

The Dubai Mall became the most visited place in the world with 105 million visitors in 2023

The gold market rate continues to rise. Market forecast: The most expensive gold price record

Over 70% of UAE retailers see increase in revenue since accepting digital payments

With the aim of increasing payment methods in the UAE, the global cross-border payment network Terrapay cooperates with Dubai Duty Free

Dubai has welcomed 1.77 million international tourists in January 2024

According to the order of Sheikh Hamdan, the salaries of muezzins and religious leaders in Dubai will be increased

An increase of 4000 dirhams for school registration

How foreigners can buy property in Dubai; key notes

In Downtown Dubai, a new Dh1.2 billion luxury property has been unveiled.

Dubai property projects sold 'in minutes'; nearly 90% of sales come from first-time buyers

Warning to UAE travelers: Failure to declare cash and valuable items is punishable

Dubai Islamic Bank offers compensation to affected customers

Dubai off-plan properties prices to surge 15% in second half of 2024

Tenants in some areas still pay less than Rera Rental Index

Up to Dh200,000 fine in UAE: How employees can file case against employer for unfair practices

Emaar’s first-half profit jumps 33% to Dh7.8b

More Dubai developers start offering offplan price discounts, even up to 20%

Up to Dh10,000 fees for 17 drone-related services

Some schools set backpack weight limit to prevent chronic pain, bad posture

New telemarketing rules in UAE: Full list of fines explained as laws go into effect from August 27

Gold prices hit record high, surpass Dh300 per gram again

Property owners rake in up to Dh15 million in profits by flipping units in 4 years

Dubai has rules for providing services with virtual services

UAE's ADNH is offering 40% of its catering business in the IPO

Dubai tenants are facing an increase in the commission of consultants in cheap properties

High salary for AI professionals in UAE due to labor shortage

More Dubai property buyers opt for mortgage over cash

UAE bank to deduct funds from customers' accounts to reflect charges that were not debited during system upgrade

Sheikh Mohammed approves largest budget ever in Dubai’s history with revenues of Dhs302 billion

The bankruptcy of the Dizabo superpower caused the loss of millions of capital by Emirati investors .

New taxes in GCC: More jobs in UAE due to skills shortage in all areas of tax

Dubai’s Salik reports Dh822-million net profit in 9 months; revenue from fines hits Dh174.8 million

Parkin partners Awqaf Dubai to build multi-story car park building

UAE: Bitcoin Inheritance Planning Essential, Say Experts

AE Coin Receives Final Approval from UAE Central Bank for Launch of First Stablecoin

UAE Lottery Debuts with AED 100 Million Grand Prize

Car Insurance Premiums Skyrocket Across UAE

UAE launches VAT refund system for tourists shopping online

Space42 Secures Additional Dh18.7 Billion Contract from UAE Government

DSF announces 12-hour mega sale offering up to 90% discount at selected shopping malls

UAE petrol prices for January 2025 announced

I have Dh10,000 to invest: Where can I grow my savings in 2025?

Revealed: Dubai Areas with Fastest Rent Increases and Highest ROI in 2024

Dubai Jobs: Company Gives Dh150 Million in Bonuses to Employees

Dubai: Rules for landlords on increasing rent under the new rental index

The UAE will use more nuclear reactors in the future

UAE declares July 18 as Union Pledge Day

Dubai Police announces use of drones to tackle emergencies; residents alerted

Sheikh Hamdan visits Ministry of Defence, reviews its operations, latest initiatives

UAE: 4 soldiers killed in accident while on duty, 9 others injured

Emirates extends flight cancellations to Iran and Iraq until October 23

Dubai Ruler establishes new entity to strengthen city's response to crises, emergencies

Drone use for individuals still banned in Dubai until further notice

Lorem ipsum dolor sit

Cancel all trips

Sheikh Zayed Road to temporarily close for three days starting Friday

Dubai to increase its emissions reduction rate to 50% by end of 2030

New UAE labour law: you can’t be fired over a mental health condition

'It was a life-changing moment': How Ed Sheeran helped Dubai kids believe in their dreams

American Hospital Dubai announces surgical simulation, robotics and artificial intelligence center

Dubai: Left something in the taxi? Here’s how to report lost items

Enjoy true exclusivity with this credit card

Dubai could be getting two major new rail systems

The ‘1 Billion Meals Endowment’ tower will be built on Sheikh Zayed Road and will cost Dhs800 million.

Hail rain on Tuesday morning in Al-Ain region

Causes of death revealed for 7 whales that washed up ashore

The Lebanese artist made a red heart with recycled objects in Abu Dhabi Children's Heart Surgery Hospital

The Dubai Mall became the most visited place in the world with 105 million visitors in 2023

Opening of a new intersection on Al-Wasl Road in a busy area

UAE roads turn into rivers

After forty years of retirement, the QE2 ship returns to the port of Dubai

Dubai Police will soon send robotic dogs to help with high-risk missions.

Dubai reduced the process of obtaining a work visa from 30 days to 5 with the new platform