Customers of Dubai’s Gold AE to launch legal action

A group of customers of precious metals trader Gold AE are set to launch legal proceedings against the company after being unable to access their cash and accounts for months.

The group has been unable to retrieve their cash or metals since late October after the firm ceased trading, a customer told UAE daily The National.

About 200 parties with claims in excess of $25m are preparing a legal case against Gold AE, the customer said.

“We are a group of around 200 victims, so 200 families have been affected by this fraud. Most of us have put all of our life’s savings into this online gold shop and are totally depressed and disappointed,”

He said it was important for the group to get justice if Dubai wanted to be true to its image of the ‘city of gold’.

There was no mention of when the first legal claim would be filed.

Customers of the company have been unable to access their accounts since late October when Gold AE representatives ceased official communications, it was reported.

Dubai Multi Commodities Centre terminated the company’s trade licence a month later following an investigation into fraudulent activity.

The company said in a December email that it did not have legal authority or access to the assets, funds and commodities.

The email blamed the mishandling of funds and the disappearance of the previous management. Criminal action was being pursued against the former chief executive of parent company Gold Holding Mohammed Abu Alhaj and two other executives, the company said.

Three Gold Holding executives were arrested last month, The National reported, citing police sources. The exact charges against them were not confirmed.

Abu Alhaj accused Gold Holding’s chairman of non-payment for a transfer of shares in the company, causing it to lose $200m worth of contracts and slander in a legal action at DIFC Courts last year.

Last week, a judge at the court struck out all but the claim for outstanding payments for shares. Abu Alhaj said that he intended to appeal the decision.