Dubai jails two men, fines Dhs201,000 for defrauding investor in fake hotel lease scam

The Dubai Misdemeanor Court has sentenced two men — an Asian and an Arab — to one year in jail followed by deportation after being found guilty of defrauding an Arab investor using forged documents. The court also ordered them to pay a fine of Dhs201,000, equivalent to the amount they had unlawfully obtained from the victim, and ruled that the forged lease contract and related documents be confiscated. The verdict was later upheld by the Court of Appeal.

The case dates back to December of last year, when an Arab investor approached the police to report that he had been deceived by the two defendants. According to his statement, the Asian defendant falsely claimed to be an official working at a well-known hotel in Dubai, while the Arab defendant introduced himself as a real estate broker. Together, they convinced the investor that they could lease him an entire floor in the hotel for Dhs380,000. To secure the supposed agreement, they demanded an upfront payment of Dhs210,000 in cash and a post-dated cheque for the remaining amount.

Believing their story, the investor handed over the requested cash and cheque. He noted that he left the beneficiary’s name blank on the cheque at the request of the Asian defendant, who claimed he would fill it in later after confirming details with the hotel management and entering the information through the hotel’s computer system. The investor was assured that the floor would be handed over within 10 to 20 days, after certain maintenance work was completed as agreed.

However, just three days later, the investor received a call from a friend urging him to visit the hotel and verify the contract. When he arrived and presented the lease agreement to the hotel’s management, he was shocked to learn that the document was completely forged and that no such lease arrangement existed.

A hotel employee later testified that the Asian defendant had exploited his distant kinship with the hotel owner to appear credible and gain the investor’s trust. Following the report, Dubai Police launched an investigation and successfully apprehended the Asian defendant. During interrogation, he admitted to orchestrating the fraud with the help of the Arab defendant. He also claimed that the defrauded money had been handed over to a third accomplice, who had planned the entire scheme. 

The court found both men guilty of forgery and fraud, emphasizing the seriousness of such crimes that harm public trust and damage Dubai’s reputation for business integrity.