Neil Grant, originally from Scotland, was convicted by the Dubai Criminal Court of not registering his company Prosperity Offshore Investment Consultants with the Insurance Authority, reports local newspaper The National.
His clients complained to the Dubai Public Prosecution, alleging that he had pumped their money into waste removal firms and student accommodation in the UK, losing their investments in the process.
Grant failed to attend an appeal hearing in November and left Dubai. International Adviser understands that he was convicted in absentia.
Alarm bells
One client, Amber Waheed, told the newspaper that the average sum lost was around £100,000 ($140,980, €113,775) and that Grant had about 400 clients.
“I’ve been told by lawyers that this is a landmark case in that it’s the first time a financial advisory has been taken to criminal court and judgment has been ruled in the victim’s favour.”
She said that alarm bells went off when investors were told the value of their investments were fluctuating wildly in price when they were supposed to have been in more stable, long term investments.
They were found to be short term, high risk, unregulated, illiquid funds that paid Grant high commissions.
Waheed, who was recommended Grant by friends, told The National: “I know we should have checked out his background more, rather than rely on referrals. It is an expensive lesson for all of us.”
Barriers to justice
Bringing Grant to justice was difficult, as lawyers quoted Waheed as much as AED100,000 (£19,310, $27,224, €21,969) to take on the case.
The prosecutor initially said there were no charges, but an extension was granted and the case was eventually brought to criminal court.
“I’ve been told by lawyers that this is a landmark case in that it’s the first time a financial advisory has been taken to criminal court and judgment has been ruled in the victim’s favour,” Waheed said.
Long history
In a profile interview with The National in 2012, Grant was described as the executive director of Prosperity Offshore Investment Consultants.
At that time, the father of four had lived in the UAE for 11 years.
He said: “Life began as a district agent for a home-service company called Pearl Assurance in the vast rural location of the Scottish Highlands, travelling many miles every week to meet clients in all weathers.
“However, the one thing that remained stable was the willingness for people to seek financial advice and implicitly trust the person that was offering the same.”
In another interview two years later with Omani newspaper Y-Oman, he added: “I joined the financial services sector in 1983 with Pearl Assurance in the UK and won various promotions to sales manager, district manager and branch manager, before leaving in 2001 to come to Dubai.
“I joined PIC (Professional Investment Consultants) and left them as branch manager in Dubai in June 2003, when deVere bought their licence.”
He was asked to describe himself in three words.
He chose: “Gregarious, meticulous and still ambitious.”
