Dubai Forums Dubai Discussions Dubai General Chat

Property 'fraudster' extradited back to Dubai by: Joanne Bladd on Thursday, 18 February 2010

http://www.arabianbusiness.com/581836-r ... k-to-dubai

FOCUS: It is alleged that Michael Bryan Smith embezzled $150m from Dubai real estate firm Limitless.A Thailand court agreed Thursday to extradite a Briton to the UAE to face charges of embezzling from a real estate company in Dubai, despite having no formal extradition treaty with the Arab state.

Michael Bryan Smith was arrested in Bangkok in May last year after spending eight months on the run.

"The court has decided to extradite him to the UAE," a judge at Bangkok criminal court told AFP. "Even though Thailand and the UAE do not have an extradition treaty, the UAE has expressed the willingness to do favours if Thailand asks in future."

The 43-year-old Smith, who is married to a Thai woman, is accused of funneling workers’ salaries into his own bank account while working as a personnel manager at Limitless, a property unit of state-backed conglomerate Dubai World, in the first five months of 2008. The amount is thought to total $600,000.

The UAE issued a warrant for his arrest in August 2008 on charges of forgery and illegal possession of stolen funds.

British-born Smith has repeatedly protested his innocence, telling press in January that he would fight any efforts to extradite him to the UAE. He claims that UAE authorities have not produced any evidence as to why he should be charged or extradited.

Police said Smith had travelled through Vietnam, Hong Kong and the Philippines after fleeing Dubai in 2008, before being arrested in Thailand last year.

Gulf News reported he was arrested in the red light district.

Thailand has agreed to extradite him when Thailand and UAE don't have an extradition agreeement. The UAE has a certain number of days to provide proof to the Thailand authorities of the alleged crime. Apparently the UAE extended the promise to help Thailand if the need ever arose.

What I can't figure out is how for that period of time he was funnelling employees salaries and nobody complained about not receiving salaries? The only way he could get around it is if he created dummy employees on the payroll and transferred those "salaries" to an account (his account).

Bora Bora wrote:Gulf News reported he was arrested in the red light district.

Thailand has agreed to extradite him when Thailand and UAE don't have an extradition agreeement. The UAE has a certain number of days to provide proof to the Thailand authorities of the alleged crime. Apparently the UAE extended the promise to help Thailand if the need ever arose.

What I can't figure out is how for that period of time he was funnelling employees salaries and nobody complained about not receiving salaries? The only way he could get around it is if he created dummy employees on the payroll and transferred those "salaries" to an account (his account).

It is probably the final paragraph that describes what he was doing, a lot of this kind of thing was happening in the busy times here.

Bora Bora wrote:Gulf News reported he was arrested in the red light district.

Thailand has agreed to extradite him when Thailand and UAE don't have an extradition agreeement. The UAE has a certain number of days to provide proof to the Thailand authorities of the alleged crime. Apparently the UAE extended the promise to help Thailand if the need ever arose.

What I can't figure out is how for that period of time he was funnelling employees salaries and nobody complained about not receiving salaries? The only way he could get around it is if he created dummy employees on the payroll and transferred those "salaries" to an account (his account).

Mind you if you read the article their are references to a far bigger amount of cash $150m or so.

At the end of the day it is turning out (or will) that no fraud was committed by those being accussed. Simply an attitude of; "it must have been fraud committed by expats since we had all the check and balances, financial planning, models, etc. etc" At most poor planning and management (gross negligence) not criminal intent are the causes. When I first arrived I was told the same story on close scrunity not a single case can be proven (but I am not speaking about all the stories published in the paper). I am courious to know whether any one has actually been convicted of fraud for a Dubai real property "fraud" since Dubai imploded. Anyone?

XPT wrote:At the end of the day it is turning out (or will) that no fraud was committed by those being accussed. Simply an attitude of; "it must have been fraud committed by expats since we had all the check and balances, financial planning, models, etc. etc" At most poor planning and management (gross negligence) not criminal intent are the causes. When I first arrived I was told the same story on close scrunity not a single case can be proven (but I am not speaking about all the stories published in the paper). I am courious to know whether any one has actually been convicted of fraud for a Dubai real property "fraud" since Dubai imploded. Anyone?

To answer your question: yes, a number of people have been found guilty of fraud, embezzlement, etc.

For those residing in Dubai and who were found guilty of misdeeds (depending on their nationality), in most cases they received a firm slap on the wrist. They were also ordered to undergo exorcism based on their defense: possessed by jinns (translation: the devil made them do it). If outside Dubai and found guilty in absentina, in the event they return to their homeland, it will be a slap on the behind.

Bora Bora wrote: To answer your question: yes, a number of people have been found guilty of fraud, embezzlement, etc.

Really? I thought there would be but mostly it is accusations and "absentia" convictions (and who knows whether those people really exist). Who was actually convicted and is currently in prison for fraud or embezzlement on properlty related crimes?

Yeah them jinns are a bit of a nuisance.

XPT wrote:

Bora Bora wrote: To answer your question: yes, a number of people have been found guilty of fraud, embezzlement, etc.

Really? I thought there would be but mostly it is accusations and "absentia" convictions (and who knows whether those people really exist). Who was actually convicted and is currently in prison for fraud or embezzlement on properlty related crimes?

Yeah them jinns are a bit of a nuisance.

I think naming and shaming expats is to set the example that no one will get away with a crime. On the other hand, Dubai does have an image to keep up with regard to it's "own".

Lt. Gen. Dahi, who is one of the good guys, stated that there were about 50 people who would be investigated - and I'm sure he was not referring to expats, since he alluded to the fact that those people should serve the same prison terms as the "little" guy who was convicted. We all know how the justice system works here (passport profiling??). He was basically saying "if you do the crime, you do the time".

Bora Bora wrote:

XPT wrote:

Bora Bora wrote: To answer your question: yes, a number of people have been found guilty of fraud, embezzlement, etc.

Really? I thought there would be but mostly it is accusations and "absentia" convictions (and who knows whether those people really exist). Who was actually convicted and is currently in prison for fraud or embezzlement on properlty related crimes?

Yeah them jinns are a bit of a nuisance.

I think naming and shaming expats is to set the example that no one will get away with a crime. On the other hand, Dubai does have an image to keep up with regard to it's "own".

Lt. Gen. Dahi, who is one of the good guys, stated that there were about 50 people who would be investigated - and I'm sure he was not referring to expats, since he alluded to the fact that those people should serve the same prison terms as the "little" guy who was convicted. We all know how the justice system works here (passport profiling??). He was basically saying "if you do the crime, you do the time".

Yes you are right, they are "naming" people (although who knows whether those names are real) so people are fearful (same reason they do it for the minor crimes - see Ajman lashes post). But it also serves to send the "message' that the failure of the real estate market here was driven by criminal expats who committed fraud etc. But my sense is that greed and negligence are at the root of many of the failures (like elswhere) but not fraud. Names have been named but no one convicted.

Well, if you have been here long enough, there is one way to "identify" who is in, who is out. First, the people who surround Sheikh Mohammed in his photos. There are some new faces, and old faces (people who have been around for a long time) that were pushed to the back who are now back in front, people "resigning" from high positions, and other indications of change.

What you won't read or see - but may hear about - is the answer to "where are they now?", those who are no longer in the "picture". Dubai isn't prepared to air its dirty laundry. I think to name and shame those within who are responsible for "crimes" would earn Dubai respect. This is one instance where "if you tell a lie enough times it will become the truth", doesn't work.

Bora Bora wrote:Well, if you have been here long enough, there is one way to "identify" who is in, who is out. First, the people who surround Sheikh Mohammed in his photos. There are some new faces, and old faces (people who have been around for a long time) that were pushed to the back who are now back in front, people "resigning" from high positions, and other indications of change.

What you won't read or see - but may hear about - is the answer to "where are they now?", those who are no longer in the "picture". Dubai isn't prepared to air its dirty laundry. I think to name and shame those within who are responsible for "crimes" would earn Dubai respect. This is one instance where "if you tell a lie enough times it will become the truth", doesn't work.

Yeah but that is the "we are in the know, trust us" and others either fear or believe that stuff. Kind of reminds me of...oh nevermind

How about "what happens in Dubai, stays in Dubai"? This would apply to everyone!!! except expats of course.

Bora Bora wrote:How about "what happens in Dubai, stays in Dubai"? This would apply to everyone!!! except expats of course.

They are now copying expressions too

I, unlike S&O, actually feel sorry for this guy. He was arrested on the claim that he embezzled $150 million, which was later reduced to $2.2 million and finally revised to $600K.

Anyone who has worked for the Dubai World group of companies will tell you - without reservation and to everyone's constant annoyance - that "external payments" can not be made without umpteen ticks and signatures from the central finance function - whose job it is (and has been for the last 2.5 years) to find ANY reason NOT to make payment against any invoices. [Please go verify this with a DW supplier]

There is no way that Smith invented ghost staff or labourers to claim salaries against and there was certainly no way of accumulating even $600 k to have been siphoned away from the workers - Come on, we all know what they get paid - Smith would have had to invent a crew of 1,000 working flat out for 3 months unpaid to have squeezed AED 2.2 million out. Inside news amigos - never gonna happen !

Now if the allegation was that he intermediated a "deal" between Limitless and a "service" provider, to say provide the labour force for the Canal and his bosses were not "cut in" on the deal, well I would have to say that it might be possible - BUT that is not embezzlement nor is it fraud - it is graft, and a normal part of business in the Gulf states (only it is generally the lokals that are allowed to pocket the wonga & therein I thnk you will find the basis of the angst that he caused.)

This is all about sour grapes and political expediency.

Smith faces 5 years + for a non crime whereas Shiniwatra faces 2 years (maybe) for raping a country and political mismanagement leading to the deaths of many people - Unfrikkinbelievable


Comments like "Another fraudster brought to justice" are pathetic and purile, and merely serve to underline the ostrich mentallity of many Dubai Expats in a country where someone like 24/7 posts a headline, something like "Tailban putting up a good fight against Nato forces" !!!!!!!!!!!!!

viking-warrior wrote:I, unlike S&O, actually feel sorry for this guy. He was arrested on the claim that he embezzled $150 million, which was later reduced to $2.2 million and finally revised to $600K.

Anyone who has worked for the Dubai World group of companies will tell you - without reservation and to everyone's constant annoyance - that "external payments" can not be made without umpteen ticks and signatures from the central finance function - whose job it is (and has been for the last 2.5 years) to find ANY reason NOT to make payment against any invoices. [Please go verify this with a DW supplier]

There is no way that Smith invented ghost staff or labourers to claim salaries against and there was certainly no way of accumulating even $600 k to have been siphoned away from the workers - Come on, we all know what they get paid - Smith would have had to invent a crew of 1,000 working flat out for 3 months unpaid to have squeezed AED 2.2 million out. Inside news amigos - never gonna happen !

Now if the allegation was that he intermediated a "deal" between Limitless and a "service" provider, to say provide the labour force for the Canal and his bosses were not "cut in" on the deal, well I would have to say that it might be possible - BUT that is not embezzlement nor is it fraud - it is graft, and a normal part of business in the Gulf states (only it is generally the lokals that are allowed to pocket the wonga & therein I thnk you will find the basis of the angst that he caused.)

This is all about sour grapes and political expediency.

Smith faces 5 years + for a non crime whereas Shiniwatra faces 2 years (maybe) for raping a country and political mismanagement leading to the deaths of many people - Unfrikkinbelievable


Comments like "Another fraudster brought to justice" are pathetic and purile, and merely serve to underline the ostrich mentallity of many Dubai Expats in a country where someone like 24/7 posts a headline, something like "Tailban putting up a good fight against Nato forces" !!!!!!!!!!!!!

I know a man who wrote a book about his experiences with Dubai World.
He will confirm the above Dubai World common practices.

Sounds to me that Dubai World top management is playing dirty games with its employees. The lower CEO's get all the blame for so called malpractice.

The only ones who probably really enriched themselves are the upper top of Dubai World and now that the company is in default and nearly bankrupted, the blame has to be put on the puppets down below. It smells like a huge fraud. Any other observations that can back this up?