Hoards of investors lose money to UAE property development scams every year.
Dubai Property Scams - Class Actions
27 June 2022
UAE Property Developer Scams - La Hoya Bay - Ras Al Khaimah
A group of more than 800 investors are furious after losing millions in the La Hoya Bay project on Marjan island in the Emirate of Ras Al Khaimah (RAK).
The project was constructed by Frank Khoie of Khoie properties whose development failed when he bounced cheques to the government’s RAKIA. Khoie was jailed for a brief time, the land was repossessed and sold at a private auction with none of the investors being compensated or repaid their deposits. “It was a win-win for everyone except the investors”, says Radha Stirling, CEO of Due Process International and Detained in Dubai. “Ras Al Khaimah is known as the wild west of the Emirates and we have seen significant legal abuse, corruption and human rights violations over the years. Individuals and groups of investors have lost properties to the government, charlatans and fraudsters. Foreign investors being duped out of deposits on off-plan developments has been commonplace for more than a decade and is not unique to RAK. We see the same thing happening in Dubai and Abu Dhabi and we have seen first hand the impact it's had on individuals.
“Emirates based development and investment companies have poured millions into marketing to foreign nationals, particularly in Britain. With luxury property shows and social media advertising, the lure of inexpensive luxury property is tempting to Brits who are fed up with unobtainable local property prices.
“A conflict of interest arises when the government has active business interests. Government controlled property development firms have misused their powers for profit, deliberately causing situations where they will be able to repossess real estate and seize investments. Victims have little recourse in litigation when the government has direct control over the outcome of cases. Government owned Nakheel is known to expats as "Nakhell" and other giants like Emaar Properties, Damac and Meraas have been the subject of innumerable complaints from duped investors over the past 20 years. Still, the practices haven't changed.
“The UAE is one of the riskiest places to invest and we caution foreigners against risking their life savings or any meaningful amount that would cause them suffering if stolen. The UAE is not only a fraudsters paradise but corruption within banks and the government makes it a serious risk to financial loss and even loss of freedom.
“Khoie is now operating in Dubai, promoting himself as a hot shot investment manager and property developer despite the La Hoya Bay failure which ruined the lives of hundreds.
“It’s important to make shady developers and property companies accountable or this large scale scam will continue and grow in prevalence. We are assessing class actions and individual claims for real estate and development losses. It’s time to bring these large scale schemes to justice”.