Dubai: Prawns, laptops, flight tickets vanish in Dh25 million scam

A Dubai company posing as a legitimate ship chandler has allegedly pulled off a multi-million-dirham scam, leaving dozens of suppliers across the UAE trying to recover losses after their post-dated cheques bounced.

Rak Marine Services operated out of offices 604, 605, and 606 in Al Reem Tower on Al Maktoum Road in Deira.

With a professional-looking website and documents claiming to offer ship repair, fabrication, equipment rental, and manpower services, the firm appeared credible. But behind the façade, it was running what now appears to be a familiar fraud: placing bulk orders after small upfront payments, then disappearing before settling its dues.

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The company is believed to have shut down operations and vacated its offices around July 10, just days before many of the post-dated cheques were scheduled for clearance. Their representatives could not be reached as their phones remained switched off.

The stolen goods include an eclectic mix: prawns, chicken, lamb carcasses, steel coils, laptops, iPhones water heaters, detergent powder, energy drinks, spices, furniture, and over 850 international flight tickets.

Sister concerns Rak Impex Goods Wholesalers and Rak Facility were also involved in the operation, according to multiple suppliers. All three entities have since gone dark. Phones are switched off, offices locked, and warehouses emptied, leaving traders scrambling for answers and legal recourse.

A shared Google Drive folder reviewed by Khaleej Times lists 95 companies that reported unpaid dues, with combined losses exceeding Dh25 million. The final tally could be far higher as more suppliers come forward.

“They came across as legitimate,” said Andrey Palukhin, a Dubai-based Ukrainian supplier who delivered 300 water heaters worth Dh90,000 last month. “We visited their office, inspected their warehouse in Sharjah, and were convinced it was all above board. The cheques bounced shortly after delivery.”

“We’ll survive the loss,” he added. “But others may not be so lucky.”

The fraud has affected businesses across multiple sectors—construction materials, electronics, food supplies, and travel.

857 international flight tickets

Faizan, general manager of Vista Maritime Travel, said his company sold 150 international flight tickets and associated hotel bookings worth around Dh178,000. “We later learned the tickets were resold to third parties.”

Another travel agency, which requested anonymity, reported losses of Dh670,000 for 707 flight tickets issued between June 5 and July 10.

“They claimed to be a conglomerate with 10,000 employees and said they needed tickets for staff and clients,” the company manager said. “I visited their offices and was impressed by the setup. But once they exceeded their credit limit, they delayed payments, saying their boss doesn’t do business during Muharram and would clear dues after the 10th. Of course, that never happened. This is a huge blow.”

She later matched three ticket holders to individuals who had posed as Rak Marine representatives, using photos from passports. The information was shared with other affected businesses through a WhatsApp group created to track developments.

Some traders say this isn’t the first time they’ve been targeted. Irshad Viruthambut Zacaria of Al Zareen Electrical, who supplied Dh159,000 worth of cables to Rak Marine, said he had lost Dh550,000 to a similar scam by ARS Electronics in July 2023.

“Being hit twice in two years has left us tethering,” he said.

Food suppliers were also impacted. Odessa Marine Shipchandlers provided Dh220,000 worth of goods, including 2,000 kilograms of prawns, 900 kg of chicken, oil, and tea bags. General Manager Badhusha said suspicions arose when the first of three cheques bounced earlier this week.

“We tried calling them, but no one picked up. We rushed to their cold storage in Al Awir. It was vacant. Then we visited their warehouse in Sajja, which was also shut down. That’s when we knew we’d been scammed.”

Police complaint

Some business owners have filed complaints at Al Muraqqabat Police Station but said they were advised to treat the matter as a civil dispute. Others, whose cheques haven’t yet matured, were told to return only after the cheques bounce; a legal formality they say delays action despite obvious red flags.

“We know the cheques will bounce, just like everyone else’s. But until that happens, we can’t even file a complaint,” said the owner of a company that supplied laptops and iPhones.

“This isn’t just a payment issue, it’s sophisticated fraud,” said the owner of an Ajman-based steel supplier that lost Dh845,000 worth of plates and coils.

To build credibility, the company submitted fake documents, including forged VAT certificates and fabricated audit reports. An investigation by Khaleej Times found that the audit firm linked to Rak Marine Services had previously prepared financials for other companies that disappeared under similar circumstances. Dynamic Alliance Technical Services, Royal Luck Foodstuff, and Harbine Middle East Marine Services, all defaulted after acquiring goods against post-dated cheques.

The operation used multiple warehouses to receive deliveries. Most have since been vacated. One exception is a 4,000-square-foot unit in Emirates Industrial City, Sharjah, which still contains forklifts, foodstuff, industrial chemicals, and other materials.

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Landlord Shah Rukh Shabbir said the warehouse was rented for Dh200,000 annually, but only the first quarterly cheque of Dh50,000 cleared.

“The second cheque was due on June 26. They asked me to hold it for a week. I now realise they needed time to move the goods,” he said.

“When it bounced on July 3, I refused them access until payment was cleared. They never came back.”

Shabbir later learned that the tenancy contract was never registered with Sharjah Municipality, as required by law.

“I can’t lease the warehouse to anyone while it’s filled with abandoned goods. I’m also concerned about what’s inside. There may be frozen food that could rot and industrial chemicals left in the heat. It’s both a health and safety hazard.”

Reputational damage

Many traders are reluctant to speak publicly, fearing reputational damage.

“If it’s known that we’ve lost money, our own suppliers will tighten credit or demand immediate payments,” said one trader.

Outside the locked doors of Rak Marine’s offices and warehouses, many suppliers have connected with others who were similarly affected. A WhatsApp group now has over 220 members sharing updates and coordinating their next steps.

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“We’ve been told to go to court,” said one member. “But legal fees are high and there’s no guarantee we’ll recover anything. I don’t know how we come back from this.”

The case mirrors several scams previously reported by Khaleej Times, where companies vanished after receiving goods and services on credit backed by bounced cheques and forged documents.

www.khaleejtimes.com (Article Sourced Website)

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