The Registration Authority (RA) of Abu Dhabi Global Market (ADGM) has announced the conclusion of proceedings brought by the RA against Elia Investments Limited (Elia) and Babar Abbas, Elia’s sole shareholder and former director.
Abbas was found to have engaged in two instances of fraudulent trading contrary to the Companies Regulations 2020 (CR 2020) as well as making a false statement to the RA related to Elia, said a statement.
"As a result, the RA has imposed a fine of $100,000 on Mr Abbas for his fraudulent trading and $25,000 for making a false statement to the RA. In addition, the RA has also taken the decision to disqualify Mr Abbas from being a director of any ADGM company for a period of 15 years which is the maximum period allowed," said the statement.
"The proceedings found that Mr Abbas used Elia as a vehicle for fraudulent trading resulting in significant losses to the victims. He solicited and obtained payments from victims in the form of 'deposits' required by Elia for proposed financing arrangements. Elia failed to provide the financing that it promised while Mr Abbas misappropriated most of the said 'deposits'," it said.
Elia had a limited ADGM licence, that allowed it to conduct the activities of a special purpose vehicle (SPV) only and that has now expired. Elia was found to have exceeded the scope of its licence contrary to Commercial Licensing Regulations 2015 in two instances and was fined the maximum of $30,000, it said.
“The large fines and lengthy disqualification order imposed on Mr Abbas for his fraudulent conduct sends a strong message that individuals who contravene ADGM’s commercial law will be held accountable for their misconduct,” said Dhaher bin Dhaher, CEO of ADGM RA. “To preserve the reputation of ADGM, we will relentlessly pursue significant penalties for individuals like Mr. Abbas and companies like Elia who commit serious violations of ADGM legislation.” -TradeArabia News Service