Ras Al Khaimah Court Acquits Commercial Broker in Dh10.5 Million Trade Fraud Case

A court in Ras Al Khaimah has acquitted a 51-year-old Asian man of fraud charges linked to an alleged Dh10.5 million scam involving a fictitious sugar shipment and an associated trade financing agreement, Gulf News reported.

The court ruled there was insufficient evidence to demonstrate that the Asian defendant had prior knowledge of the fraud or intentionally aided in carrying it out. Defense counsel argued successfully that the individual had operated solely as an independent commercial broker between the transacting parties.

In the same ruling, a 48-year-old European businessman was sentenced to one year in prison followed by deportation from the UAE for defrauding a trading company. The court also levied a Dh500,000 fine against the businessman's company after finding that the corporate entity was utilized to process the transactions and receive disputed funds.

Court records cited by Gulf News show the dispute centered on two transactions, beginning with a contracted purchase of 12,500 tonnes of ICUMSA 45 refined white sugar valued at $6.31 million from Abu Dhabi Port. The European businessman presented documents and video recordings depicting stored sugar ready for dispatch, prompting the buyer to transfer advance payments of $1.2625 million and $600,000, though the cargo was never delivered.

A subsequent transaction involved the buyer transferring funds toward the issuance costs of a standby letter of credit (SBLC), leading prosecutors to bring charges of fraud, criminal participation, and unlawful receipt of funds through deception against the defendants.