Over 6,000 investors have fallen for the Dubai Forex scheme, losing close to $300 million funds in deposits. How did the scheme operate and will victims recover any of the funds?
8 November, AtoZForex – More than 240 Dubai investors have reached out to the UK private firm, Carlton Huxley, specializing in scam investigations to help them recover their funds. Investors claim to have lost a vast amount of money in a Dubai foreign exchange fraud.
Who executed the Dubai Forex scheme?
Clients of Carlton Huxley claim that they have lost funds in the Exential trading scheme. The scam was executed by Exential Group, forex fund located in Dubai Media City. The illegal company promised investors to get annual returns of 120 percent. The fund was not regulated by any regulatory body. In July, UAE’s financial regulators ordered the firm to cease its operations. Unfortunately, when clients of Exential Group attempted to close their accounts they could not withdraw their funds.
Presumably, more than 6,000 investors have deposited their money which constitutes around US $300 million. Now, the UK firm is trying to return their clients' lost funds and to locate the money. Bill Ferguson who is a senior investigator at Carlton Huxley stated that the investigators performed a judicial audit into where the money went and the legality of those transactions.
Who has been affected the most?
Carlton Huxley is now aware that three big fraudulent schemes have taken place in Dubai during past five years. Mr. Ferguson stated that the individuals who have been affected the most are cabin crew.
Some investors took loans and opened accounts from $20,000 (Dh73,500). Taking into account that the average cabin crew salary is around Dh7,000 a month, many incurred significant financial losses, with some left unable to pay back their loans. Hence, the investigators worry that there can be serious consequences for the Dubai airline industry due to the debt level loaded on to cabin crew.
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One of the scam victims who turned to the UK agency commented:
“Exential was the first investment I had come across in Dubai, because my wife, who is cabin crew, was approached. It had been focused on the entire UAE aviation sector. It looked straightforward, so we invested $60,000. On every flight, she is on, at least two crew members have accounts and lost money. I’ve heard so many sickening stories. It has affected people rapidly and in different ways."
In addition, Bill Ferguson mentioned that Carlton Huxley will communicate to Emirates authorities to inform them about the scam so that the authorities can either cooperate with the firm or perform their own investigation.
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