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Khaleej Times
13-06-2025
- Business
- Khaleej Times
Fake platforms, real losses: How UAE residents fall victim to online trading scams
A Khaleej Times (KT) investigation has uncovered an online trading syndicate in the UAE operating a high-stakes scam through fraudulent call centres, fake trading platforms, and shell companies set up to siphon investor funds. Documents, testimonies, and internal communication show that the syndicate is behind a cluster of dodgy platforms including Sigma-One Capital, DuttFx, EVM Prime, UTrade, EVA Markets and Core Financial Markets among others that have left hundreds of investors in financial ruin in recent months. Promoted through aggressive cold-calling and slick online dashboards, these platforms were never licensed by UAE regulators. Some didn't even exist beyond a website and have since gone offline. While KT cannot independently verify the full scale of the fraud, conversations with victims and insiders indicate losses running into millions of dollars. Several investors have filed police complaints or turned to the courts for recourse. The network came under renewed scrutiny after KT published an exposé on Gulf First Commercial Brokers, which abruptly shut down and disappeared, leaving a trail of defrauded clients. In its aftermath, scores of whistleblowers, victims, and former staff stepped forward, triggering a deeper probe. Deceptive brokerage model Central to the scam is a deceptive brokerage model known as the B-book system. Unlike licensed brokers who pass trades into the real market (A-book), B-book brokers bet against their own clients and profit when investors lose. 'You're not trading in the real market,' explained a former Gulf First employee on conditions of anonymity. 'You're gambling against the house, and the house is rigged.' To tilt the odds even further, brokers manipulate trades by delaying executions, widening spreads, triggering premature stop-losses, and sometimes even showing fake profits to lure clients into investing more. Some investors were even shown instruments like ' that don't exist. 'We can't say we're going to steal your money,' said another ex-relationship manager. 'So we make it look like you lost it in a bad trade. Then we blame you, say you didn't follow instructions or misunderstood them. Once your account is empty, we cut off contact. If you persist, they may even turn hostile.' And who would know that better than the victims? AK, a Dubai resident, said he lost Dh150,000 across three platforms recently. When he confronted his assigned 'relationship manager', the man laughed: 'Do you even know how many zeroes are in one-hundred-and-fifty-thousand dirhams?' The call, he said, ended in a barrage of expletives and threats. 'That voice still rings in my head,' AK told KT, sharing an audio recording of the threats. 'They built my trust over months, then flipped overnight.' SJ, who reportedly lost $232,000 to Sigma-One Capital, said his agent not only pressured him into risky hedging positions but also manipulated the trades. The stories of AK and SJ are far from unique. Dozens of victims have described similar tactics, each steered by a carefully scripted playbook originating from Dubai-based call centres. Operational backbone These call centres form the operational backbone of the scam. KT has verified the existence of at least seven such centres across the city, each staffed with anywhere between 50 and 200 telesales agents. Internal communications show they are part of the same syndicate. For legal reasons, KT is withholding the names of the centres and individuals involved. Every morning, buses pick up staff from across the city and drop them at sites like IMPZ and Business Bay, where briefings begin at 9:15 am. 'We were told: avoid locals and government officials as it's too risky,' says 26-year-old Mohammad Zubair (name changed), who quit after witnessing a client lose $30,000. Agents are given daily quotas to convince residents to deposit a minimum of $1,000. 'Close before the 10th of the month and you get Dh900. Later clients earn Dh200,' said a former employee. 'Salaries and commissions, always paid in cash, arrived in sacks. Food was served within the premises,' he added. Zubair, who worked briefly at the Business Bay office, called it 'haram money'. Much of the money collected by these call centres is funnelled into a network of shell companies posing as legitimate businesses, ranging from software firms to e-commerce fronts. A recurring address on payment invoices is Saih Shuaib, Dubai. KT found this location listed in documents from several ventures, including a software firm that billed a Sigma-One victim for Dh18,350, and an e-commerce outfit called Core White Marketing. None of these companies were found operating at the stated address. One Keralite expat said he transferred Dh500,000, savings meant for his child's education, believing he was investing through Gulf First Commercial Brokers into a platform called Core Financial Markets. 'Now the website doesn't even load,' he said. 'We were told these companies were authorised to route our money to the platform. We believed them,' added another victim who lost Dh175,000. Currently, call centre agents are steering investors toward a new entity called Grow Plus Markets, which claims to be registered in the Comoros Union and also lists the Saih Shuaib address in its paperwork. But a site visit by KT found no such company there. Like others named in this investigation, Grow Plus Markets is not licensed by any UAE regulator, including the Dubai Financial Market (DFM) or the Securities and Commodities Authority (SCA). A comment from the SCA was not readily available. On its website, the SCA warns investors against individuals forging documents falsely attributed to the authority, including those bearing its logo and fake signatures. These documents often relate to financing and loans that fall outside the SCA's regulatory scope. The authority urges the public to verify the status of any company via its official list of licensed entities. In 2018, a Dubai court sentenced Indian expat Sydney Lemos and his accountant to 517 years in prison for running Exential, a bogus forex scheme that promised 120 per cent annual returns. Around the same time, Malik Noureed Awan, CEO of MMA Forex in Dubai was sentenced to two years in jail on charges of fraud. Proxy owners Since then, scam operators have adapted. No longer fronting the schemes themselves, they now hide behind layers of shell companies and proxy owners — a strategy designed to distance themselves from liability. Investigations show that the individuals listed on the trade licenses of these firms are often just figureheads with no real role or authority. In several cases, those named on official documents flee the country long before the scam surfaces. By the time complaints are filed or verdicts issued, the damage is done. Abu Dhabi resident Imran Moghul, who lost Dh140,000 to DuttFx, recently won a court case. Last month, a three-month jail term followed by deportation was handed to the man in whose name the DuttFx bank account was held, as well as the relationship manager who handled Imran's trades. But for Imran, the verdict brought little solace. 'They're gone,' he told KT. 'I took a bank loan of Dh176,000 to invest. I'm still paying the instalments. My life is ruined.' Another Abu Dhabi resident, Mohammad Bilal Saeed, who lost $50,000 to Sigma-One Capital, has also filed a police complaint. 'They put someone else's name on the license. You don't know who you're dealing with until it's too late.' Nigel Sillitoe, CEO of Insight Discovery, a Dubai-based market intelligence firm, says it is 'deeply concerning' that so many unregulated online trading and forex investment companies continue to operate in the UAE. 'Investors have plenty of legitimate options, so why risk your savings with an illegal, unregulated entity?' 'Unregulated platforms often promise high returns with minimal risk. These are red flags. Sadly, many individuals only realise too late after losing money with no legal protection.'
Indian Express
21-05-2025
- Business
- Indian Express
How a Dubai firm vanished overnight with millions, leaving Indian investors in the lurch
In a shocking case of financial fraud, a UAE-based brokerage firm has vanished overnight, leaving scores of investors—including many Indian expats—struggling to recover millions. Gulf First Commercial Brokers, once operating out of two plush offices in Dubai's Business Bay, has reportedly shut down operations without any notice. Until last month, the firm had nearly 40 employees working out of Capital Golden Tower, aggressively cold-calling investors with forex trading offers, according to Khaleej Times. Now, the offices lie abandoned, strewn with dust, ripped phone cables, and unanswered questions. 'They (firm management) returned the keys, cleared everything out, and left like they were in a hurry,' a security guard at Capital Golden Tower told the publication. 'Now we have people coming daily asking about them,' he added. Among those defrauded were Kerala-based expats Mohammad and Fayaz Poyyl, who together invested $75,000 with Gulf First Commercial Brokers. 'I came here looking for answers, but there's nothing, no one. Just empty offices. We called every number, but no one responded. It's like they never existed,' Poyyl told Khaleej Times after visiting the deserted office. Another Indian investor, Sanjiv, claimed the firm directed clients toward an unregulated online platform, Sigma-One Capital. 'The brokerage firm guaranteed safe returns and repeatedly assured innocent investors to convince them to invest their life savings,' he said. Mohammad, who lost $50,000, said the staff used the names Gulf First and Sigma-One interchangeably, claiming they were part of the same operation. Most victims said they were lured purely through persuasive phone calls. 'My relationship manager convinced me to make an initial deposit of $1,000. Over time, I was pressured into adding more funds, lured by the illusion of smooth trading and early profits,' Poyyl recalled. A police complaint has been filed against both Gulf First and Sigma-One. Investigations revealed that Sigma-One Capital is not authorised by either the Dubai Financial Services Authority (DFSA) or the Securities and Commodities Authority (SCA). The firm claimed to be registered in St. Lucia and said it had a Dubai office at Musalla Tower in Bur Dubai—but no such office exists. Authorities confirmed that there are no records of Sigma-One ever operating from the location.
India Today
21-05-2025
- Business
- India Today
Indians among investors duped of millions as Dubai firm vanishes overnight
Several investors, including Indians, lost millions of dirhams after a Dubai-based brokerage firm, in which they were lured to invest, reportedly vanished overnight, according to a report in The Khaleej Times. Gulf First Commercial Brokers operated out of two office spaces in the Capital Golden Tower in Dubai's Business Bay. From these offices, around 40 employees made relentless cold calls to investors, pitching forex company was based in a prominent business hub until last month, and the fraudsters even spoke to the investors in their native language to win their those affected are Keralite expatriates Mohammad and Fayaz Poyyl, who together invested $75,000 (approximately Rs 62.6 lakh). "I came here looking for answers, but there's nothing, no one. Just empty offices. We called every number, but no one responded," The Khaleej Times quoted Fayaz as saying. "It's like they never existed," he further said, standing outside the closed COMPANY FRAUDSTERS SPOKE IN KANNADAAnother Indian investor who lost over $230,000 (approximately Rs 2 crore) to Sigma-One Capital said the company paired him with a relationship manager who spoke his native Kannada and promised incredible returns."The platform showed small profits at first, and I even withdrew some money — just enough to build trust," The Khaleej Times quoted the unnamed investor with roots in Karnataka as the pressure started. They blocked withdrawals and pushed me toward riskier trades while demanding more deposits," he situation started deteriorating as his relationship manager intensified demands. "He kept urging me to invest more, while the trading platform began displaying irregularities," he said."I used credit cards, bank transfers, even my wife's savings," he disclosed. He further said, "Each deposit was supposed to be the last."Security personnel at Capital Golden Tower recalled a hurried departure."They handed over the keys, cleared out everything, and left in a rush," one guard told the publication. "Now we have people coming daily asking about them," the guard STAFF USED NAMES GULF FIRST, SIGMA-ONE INTERCHANGEABLY: INVESTORThe details of the scheme are now emerging. Sanjiv, another Indian investor, shared how Gulf First Commercial Brokers aggressively directed clients to Sigma-One Capital, an unregulated online said the brokerage firm guaranteed safe returns and repeatedly assured innocent investors to convince them to invest their life savings, according to The Khaleej who lost $50,000, said that company staff used the names Gulf First and Sigma-One interchangeably, claiming they were the same operation.A police complaint has been lodged against both the firms, Gulf First and Sigma-One, The Khaleej Times revealed that Sigma-One Capital is operating without authorisation from either the Dubai Financial Services Authority (DFSA) or the Securities and Commodities Authority (SCA).The company claimed it had registered in St Lucia, Eastern Caribbean island, and had a Bur Dubai office in Musalla Tower, Dubai, but no such office exists in reality."I wish I'd checked their credentials," The Khaleej Times quoted another investor. "Now we're left with empty offices and empty bank accounts."'MOST INVESTORS CONVINCED TO INVEST IN FIRM THROUGH PHONE CALLS'Fayaz and Mohammad said they were persuaded to invest solely through phone conversations."My relationship manager convinced me to make an initial deposit of $1,000. Over time, I was pressured into adding more funds, lured by the illusion of smooth trading and early profits," Fayaz scam mirrors a familiar pattern. In March, Khaleej Times reported how UAE residents lost millions to questionable platforms like DuttFx and EVM Prime—both promoted through cold calls that promised a "secure trading environment".Victims typically maxed out credit cards or took loans, only to discover the companies' Dubai offices were fictional. Investors suspect these operations belong to the same syndicate, according to The Khaleej Times. advertisement
NDTV
21-05-2025
- Business
- NDTV
Investors, Including Indians, Lose Millions As Dubai Firm Vanishes Overnight
Dubai: A UAE-based brokerage firm vanished overnight, taking millions of dirhams from investor funds. Until last month, Gulf First Commercial Brokers had two office spaces in Capital Golden Tower in Dubai's Business Bay, from where its around 40 employees relentlessly cold-called investors with forex offers, according to a report by The Khaleej Times. Now, both office spaces have been abandoned, with floors covered in dust, phone wires ripped, and millions in investor funds gone without explanation. "They (firm management) returned the keys, cleared everything out, and left like they were in a hurry," a security guard at Capital Golden Tower told the publication. "Now we have people coming daily asking about them," he added. Indian Among Defrauded Among the scores of investors who were left in limbo are Kerala expats Mohammad and Fayaz Poyyl, who invested $75,000 between them with Gulf First Commercial Bankers. "I came here looking for answers, but there's nothing, no one. Just empty offices. We called every number, but no one responded. It's like they never existed," said Poyyl, who went to the firm's office in Capital Golden Tower. Another Indian investor, Sanjiv, said that Gulf First Commercial Brokers aggressively pushed clients toward Sigma-One Capital -- an unregulated online platform. He said the brokerage firm guaranteed safe returns and repeatedly assured innocent investors to convince them to invest their life savings. Mohammad, who had invested $50,000 with the firm, said that the company staff used the names Gulf First and Sigma-One interchangeably, claiming they were the same operation. Most of the investors said they were convinced to put their money into the firm purely through phone conversations. "My relationship manager convinced me to make an initial deposit of $1,000. Over time, I was pressured into adding more funds, lured by the illusion of smooth trading and early profits," Poyyl recalled. Police Complaint Filed Police have filed a complaint against both firms--Gulf First and Sigma-One. Investigations into them revealed that Sigma-One Capital operates without authorisation from the Dubai Financial Services Authority (DFSA) or the Securities and Commodities Authority (SCA). The company claimed it had a registration in St. Lucia in the Caribbean and had a Bur Dubai office in Musalla Tower, but no such office exists. In fact, the probe found that there are no records of the company ever operating there. Familiar Playbook The scam follows a familiar pattern seen in earlier fraud cases in the UAE, where residents lost millions to dubious platforms like DuttFx and EVM Prime. The common factor in all these frauds was that all were promoted through cold calls, promising "secure trading environments". Victims would max out credit cards or take loans, only to discover the companies' Dubai offices were fictional.
Mint
21-05-2025
- Business
- Mint
Dubai firm disappears overnight, Indian investors lose crores: ‘They guaranteed safe returns'
A Dubai-based brokerage firm has reportedly vanished overnight, leaving behind empty offices and devastated investors who claim to have lost millions of dirhams. The only remnants of Gulf First Commercial Brokers at their former offices in Capital Golden Tower, Business Bay, are a mop in a bucket and a black garbage bag, according to a report by Khaleej Times. Until just last month, Gulf First operated out of suites 302 and 305 in the tower, employing around 40 staff members. Their primary role involved cold-calling potential clients to promote forex investments. Now, the once-bustling offices lie vacant, with phone lines ripped out and dust covering the floors. 'They returned the keys, cleared everything out and left like they were in a hurry,' a security guard told the Khaleej Times. 'Now we have people coming daily asking about them.' Among those affected are Indian expatriates Mohammad and Fayaz Poyyl from Kerala, who invested $75,000 with the firm. 'I came here looking for answers, but there's nothing, no one. Just empty offices. We called every number, but no one responded,' said Fayaz. 'It's like they never existed.' Fayaz recounted how he was drawn in by his relationship manager. 'My relationship manager convinced me to make an initial deposit of $1,000. Over time, I was pressured into adding more funds, lured by the illusion of smooth trading and early profits,' he said. Another victim, who lost $230,000, said he was assigned a relationship manager who communicated with him in Kannada, his native language. 'The platform showed small profits at first, and I even withdrew some money — just enough to build trust,' he explained. 'Then the pressure started. They blocked withdrawals and pushed me toward riskier trades while demanding more deposits.' As more details emerge, investors allege that Gulf First heavily encouraged investments through Sigma-One Capital, an unregulated online trading platform. 'They guaranteed safe returns,' said Sanjiv, another Indian investor who said he invested his life savings into the scheme. Another investor named Mohammad, who lost $50,000, said staff used the names Gulf First and Sigma-One interchangeably. 'It was as if they were the same company,' he said. Dubai Police have confirmed that a case has been registered against both Gulf First Commercial Brokers and Sigma-One Capital. Authorities further stated that Sigma-One Capital is not licensed by the Dubai Financial Services Authority (DFSA) or the Securities and Commodities Authority (SCA). "I wish I'd checked their credentials," one investor lamented. "Now we're left with empty offices and emptier bank accounts." Investigations are ongoing as more investors come forward with similar complaints.
