Dubai, UAE – An Indian businessman based in Dubai, Mirza Iliaz Baig, has been left in a state of shock and devastation after all four of his business ventures fell prey to serial scammers within a matter of days.
The scams have resulted in total losses exceeding Dh1.8 million, leaving Baig struggling to contemplate the future of his enterprises.
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Baig, who manages Iveond Consultancy, IRA Travel and Tourism, and a general trading company with divisions in foodstuff and building materials, claims that his businesses were targeted by five fraudulent companies simultaneously.
The perpetrators – Digital Genius Technologies, Daemo International, Noor Al Sidra Trading, Fair Words Goods Trading, and Wahat Al Rayan Trading – have disappeared, leaving behind numerous other complainants.
These fraudulent entities employed a common tactic: purchasing goods and services using post-dated cheques that ultimately bounced.
Substantial Losses Across Multiple Ventures
The largest blow came to Iveond Consultancy, which supplies laptops, LED TVs, and hard disks, with losses amounting to Dh958,970.
IRA Travel and Tourism were defrauded of Dh648,000, and IRA General Trading and Foodstuff, which deals in onions and sanitary ware, suffered a loss of Dh200,315. Baig is reeling from the cumulative impact of these scams on his businesses.
“I’m devastated,” Baig shared with Khaleej Times. “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.”
The Scam Unfolds
Baig’s ordeal began when Digital Genius Technologies approached IRA Travel and Tourism to book flight tickets and hotels worth Dh319,000.
Initially, the deal seemed promising as Digital Genius provided post-dated cheques with a credit period of 30 to 45 days, along with a security cheque of Dh200,000.
“I thought business was booming when Digital Genius gave us post-dated cheques for the 15th and 30th or 31st, with a credit period of 30 to 45 days for each cheque,” Baig recounted.
However, the reality was far from it, as only one cheque worth Dh92,979 was honored while the rest bounced.
During the same period, four other companies also utilized services from IRA Travel and Tourism. Documents obtained by Khaleej Times indicate that the travel firm processed 139 orders, including flight tickets to various destinations such as London, Toronto, Los Angeles, Istanbul, Kolkata, and Kuala Lumpur.
These bookings also included five-star hotel stays and luxury experiences like desert safaris, Atlantis Aquaventure, and Burj Khalifa visits.
Coordinated Fraud
Four of the five fraudulent firms targeted more than one of Baig’s companies. “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.
His biggest creditor, Digital Genius, which operated from Al Nahda in Dubai, not only owes for hotel and flight bookings but also purchased a significant quantity of electronics, including 40 Samsung screens, 100 tablets, 200 AirPods, 40 digital cameras, 20 projectors, 100 routers, and 30 MacBooks worth around Dh772,800. These goods were delivered to the company’s warehouse, which now stands empty.
A Pattern of Fraud
Baig’s experience is not isolated. Another businessman who supplied cashew nuts to Noor Al Sidra Trading reported losses of Dh110,000.
“There are many of us in the same situation,” he said. It is suspected that the goods bought with these bounced cheques are typically sold for cash at lower prices, further compounding the difficulty in recovering losses.
Legal Recourse and Uncertain Future
Baig has filed a police complaint and is now contemplating the future of his businesses. “It’s a big financial blow. I may have to close one of my businesses,” he said, reflecting on the severe impact of these scams on his livelihood.
Another Runaway Company
Meanwhile, another company, Max Clove Technologies, abruptly shut down its offices in Al Mina Street and its warehouse in Al Quoz on May 13, disappearing with goods estimated to be valued at over Dh40 million.
SM, who runs a trading company 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.”
Mohammad Risath from Sri Lanka, another victim dealing with Max Clove, shared his ordeal, stating, “I’ve been left with dud cheques worth around Dh40,000 for laptops and other computer-related equipment.”
Other companies like 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 numerous businesses facing significant losses after reportedly being scammed by Max Clove Technologies.
The Way Forward
As Baig and other affected business owners grapple with the fallout from these fraudulent activities, the focus is now on seeking justice and preventing such scams in the future.
Enhanced due diligence, stricter verification processes, and legal recourse are some measures being discussed to safeguard businesses from similar threats.
For now, Mirza Iliaz Baig remains hopeful that the authorities will bring the perpetrators to justice and that he can recover from this financial debacle. “We need stronger regulations and enforcement to prevent such scams. It’s a challenging time, but I hope to rebuild and move forward,” Baig concluded.
This article was created using automation technology and was thoroughly edited and fact-checked by one of our editorial staff members