This month, two companies have mysteriously disappeared from their Deira location, along with goods valued at millions of dirhams, as reported by local businesses. Future Star Electromechanical Works and Alpha Star Building Contracting absconded with a significant amount of materials, including tonnes of building supplies, 200 cartons of chicken, 250 laptops, numerous cellphones, and 11,731 meters of cables, after closing their shops. The estimated financial loss from this alleged fraud exceeds Dh12 million. The scam was initially detected when cheques issued by Future Star and Alpha Star started to bounce this month. Upon investigation, traders discovered the companies' offices and warehouses locked, with all staff and owners absent and their phones turned off.
Deepti Singh (name changed), an Indian businesswoman, reported a loss of over Dh3.5 million in building materials. She expressed her despair, stating, "I relocated to the UAE slightly over a year ago with the hope of creating a brighter future for myself and my family. Now, it feels like everything has collapsed." Recently, she sent her six-year-old daughter back to India, as she can no longer afford to stay in the UAE. Deepti emphasized that she conducted thorough checks before engaging in business with the companies. Despite her diligence, she was deceived by the companies' facade, which included multiple visits to their premises, meetings with staff, and reviews of their financial records. Future Star claimed their orders were for a project in Oman, while Alpha Star stated they were for a client in Abu Dhabi.
Between May 25 and July 2, Deepti supplied 750 metric tonnes of various materials to warehouses in Sharjah Industrial Area, with payment terms set at 30 days. Due to Eid holidays, Future Star requested an extension, resulting in the first cheque being dated July 5 from Future Star and July 4 from Alpha Star. On July 2 at 8.20pm, Deepti delivered the final orders to Alpha Star. However, upon returning the next morning to deliver additional materials, she found the warehouse empty. She then rushed to Future Star's warehouse, only to find it similarly deserted. "In less than 13 hours, thousands of metric tonnes of building materials disappeared without a trace," she recounted. "My goods alone would have required more than 10 trucks to transport."
Outside the closed offices of Future Star and Alpha Star, Deepti encountered other affected business owners, including one who lost 450 metric tonnes of building materials worth over Dh2 million. Approximately 40 of these owners have created a WhatsApp group to share their experiences. Among them is R.K., who supplied 85 Lenovo laptops worth Dh265,384, and a travel firm owner who processed international flight tickets and booked local tourism experiences. A pipe supplier in Al Rashidya, estimating his losses at Dh57,000, noted that no one suspected any wrongdoing. Future Star, for instance, had been in operation since 2007, but its license had recently been transferred without public knowledge.
JW, who provided 200 cartons of chicken, 8,000kg of rice, 70 cartons of beef cubes, and cooking oil totaling Dh300,000 to Future Star, explained that the company initially ordered rice and pulses, claiming they were for their staff living in a workers' accommodation. The first transactions proceeded smoothly, but then the orders expanded to include chicken and beef. Many business owners, who have since filed police complaints, are reluctant to disclose their identities due to fears of creditor harassment. "If news of our financial loss spreads, our suppliers might panic and demand immediate payments," one owner explained.
This fraudulent scheme follows a similar incident reported by Khaleej Times last month, involving five companies that disappeared after engaging in fraudulent activities. Last year, a Khaleej Times investigation revealed how other companies orchestrated a similar scam to steal large quantities of various goods.
