DUBAI // A prominent Emirati lawyer, partner and manager of a well-known law firm in Dubai denied committing more than Dh400 million in fraud involving the sale of an English football club, a court heard this morning.
The Dubai Court of Misdemeanours heard that KM, 45, embezzled the money from the former prime minister of Thailand, the businessman TS, through an escrow account set up for them by the law firm in 2008. Court records said the thefts occurred between September 18 and October 27, 2009.
KM, represented by his son and brother, sought bail, but the court turned down their request.
"I am a military justice chief and have a clean record, and by God's grace it will remain clean," KM told the court, adding that his firm had been operating for 30 years.
He said that he had kept all the amounts safe and did not take a single dirham.
"I did not breach trust, I honoured that trust," he said today.
His defence lawyers told the court TS does not have legal standing in the case because he was not the law firm's original client.
"Our client was UK Sports, not the claimant," one lawyer said.
According to the charges, KM, the legal representative of TS in a deal to sell Manchester City, embezzled 60 million pounds (Dh355m) from the sale, which netted 150 million pounds deposited into the escrow account.
Prosecutors said KM separately embezzled 15 million euros (Dh77m) from TS after TS asked him to receive a money transfer on his behalf and deposit it in a bank account in Montenegro.
Records show that KM persuaded TS to keep the funds in the law firm's bank account, then transfered it to his own bank account.
A third charge alleged KM took more than Dh39m from the fund and used it to buy a villa for himself in Emirates Hills. He is accused of spending Dh38m on the home, Dh380,000 for the real estate dealer, Dh620,000 in registration fees, and Dh495,926 as charges for his own law firm.
Prosecutors said all those funds were taken from the 150 million pounds involved in the club sale.
Additionally, he is charged with forging of two unofficial documents, a transfer application and a disclaimer, which he allegedly signed with the names of authorised executives at international firms.
He allegedly used those documents in an attempt to buy a Bombardier Global XRS Aircraft worth US$48 million (Dh176m). He requested the registration of the aircraft under the name of World White Investment Corp, which according to records, he owns.
His lawyers asked the court to assign an expert from the Financial Department at the Dubai Government to study the case.
TS faces charges of fraud in bribery in Thailand, which is seeking his extradition.
The club is owned by the Abu Dhabi United Group, led by Sheikh Mansour bin Zayed, the UAE Minister of Presidential Affairs. The group bought 90 per cent of Manchester City in 2008 and the remaining 10 per cent in 2009.
The next hearing is scheduled for April 7.
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
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Abu Dhabi – Call 999 or 8002626 (Aman Service)
Dubai – Call 800243
Sharjah – Call 065632222
Ras Al Khaimah - Call 072053372
Ajman – Call 067401616
Umm Al Quwain – Call 999
Fujairah - Call 092051100 or 092224411
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Started: 2020
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
Based: Dubai, UAE
Sector: Entertainment
Number of staff: 210
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
If you go
Where to stay: Courtyard by Marriott Titusville Kennedy Space Centre has unparalleled views of the Indian River. Alligators can be spotted from hotel room balconies, as can several rocket launch sites. The hotel also boasts cool space-themed decor.
When to go: Florida is best experienced during the winter months, from November to May, before the humidity kicks in.
How to get there: Emirates currently flies from Dubai to Orlando five times a week.