Investors Lose Millions as Dubai-based Gulf First Commercial Brokers Vanishes

Oh! Another forex scam news has emerged, hitting millions worldwide, including Indian investors. The culprit - Gulf First Commercial Brokers, a UAE-based brokerage firm. The company ran two offices in Capital Golden Tower in Dubais Business Bay. Around 40 employees called investors and pitched them attractive forex offers from these offices, according to a news report by The Khaleej Times.

A Complete Shutdown as Investors Vacate Offices in Dubai

Suddenly, the two offices were shut, and dust and ripped phone wires were all over the floors. Millions of investors‘ money are wiped out, it seems. The company’s management handed over the keys, cleared everything and vanished quickly, as per the statement issued by a security guard at Capital Golden Tower. He further added that people are coming daily to ask about the company and the money that‘s trapped because of the former’s exit.

The Victim List Also Includes Indian Investors

The Indian investors‘ list comprises Kerala expats Fayaz Poyyl and Mohammad, who collectively invested $75,000 with Gulf First Commercial Brokers. Poyyl stated that he came to the office in Capital Golden Tower seeking answers. However, he didn’t find anyone there.

Sanjiv, another Indian investor, stated that the firm pushed their clients to invest through Sigma-One Capital, an unregulated online trading platform. The brokerage firm constantly assured investors that it would offer them guaranteed safe returns. It thus urged investors to invest their life savings in this platform.

Mohammad alleged that the company staff used Sigma-One and Gulf First Commercial Brokers interchangeably, assuring him that both were the same operation. Most investors received phone calls for investments in the firm.

Poyyl stated that his relationship manager convinced him to deposit $1000 to start trading. But over time, constant phone calls came asking him to invest more with the lure of early profits and smooth trading.

Police Action Begins as Complaints Pile Up Against Gulf First and Sigma-One

Police have started investigating the case as investors complained against Gulf First and Sigma-One. While investigating, police officials have found that Sigma-One Capital is neither authorized by the Securities and Commodities Authority (SCA) nor the Dubai Financial Services Authority (DFSA). The victims said that the company claimed to have a registration in St. Lucia in the Caribbean and had a Bur Dubai Office in Musalla Tower. However, the police havent found such offices in their investigation.

The Latest Episode is an Addition to Fraud Trading Cases in the UAE

The latest trading scam just follows the fraud cases that took place earlier in the UAE. Residents here lost millions investing in dubious platforms such as EVM Prime and DuttFx. All these frauds, including the latest one, have been through cold sales calls luring investors into the guise of safe investments through trading platforms.