Scammed UAE investors lose repayment hope as conman dies in US jail

A British conman convicted of a $58 million Ponzi scheme that snared dozens of UAE victims has died in prison three years into an 11-year jail term.

James Moore was sentenced in 2022 by a New York court after being found guilty of defrauding more than 800 people who invested in start-up company Bar Works, which offered companies hot-desking space in trendy refurbished bars and restaurants around the world.

When the fake fund collapsed, FBI investigators uncovered a complex network of wire fraud and other financial conspiracies.

A web of agents through the United Property Group (UPG) helped attract investors, encouraging them to each part with tens of thousands of dollars.

On Moore’s sentencing, victims who lost life savings were told by New York City's Southern District court he must repay them $57,579,790 under a restitution order.

At the time of Moore’s imprisonment, US attorney Damian Williams described the con as a ‘Ponzi scheme on steroids’.

Moore, 63, was one of several co-conspirators involved in the scam. Some, including alleged ringleader Renwick Haddow, are yet to be sentenced.

Two years on, hopes of recovering millions of dollars in lost funds to repay victims have been dashed by Moore’s death, who served less than three years of his jail term.

Cabin crew victim

Jocelynne Houghton worked in Dubai for Emirates airline as cabin crew and lost $50,000 invested into two units sold to her by an agent in the UAE.

After being told of the death of Moore on a WhatsApp group she shares with 46 other victims, Ms Houghton said any hope of recovering funds had all but gone.

“When I found out it was a scheme I felt sick to my stomach,” she said.

“I had a phone call with Renwick Haddow before making a payment and tried to do my own due diligence with Bar Works, even amending contracts beforehand.

“It was a waste of time, with all my savings gone at the age of 30.”

Lawyers acting on behalf of victims told the group recovering funds held overseas for restitution was proving difficult, while US assets had been frozen until all criminal proceedings were complete.

To date, recovered assets could see investors reimbursed just $4,000 each, lawyers said.

Haddow, 55, pleaded guilty pursuant to a co-operation agreement, on May 23, 2019, to one count each of wire fraud and wire fraud conspiracy relating to the Bar Works scheme, and similar charges relating to a separate Bitcoin-related investment scheme.

His sentencing is scheduled for November 1, 2024.

Authorities in the US have been attempting to recover funds to redistribute to victims, but UAE investors said they are yet to receive payments.

“The Security and Exchange Commission was good at first but they dwindled and I guess lost interest,” said Ms Houghton, who now lives in Australia.

“There were so many investors there is just nothing left to redistribute.

“Now I’ve lost hope and moved on. At some stage, you just close the chapter of the book and add it to your life lessons.”

Moore and affiliated companies siphoned 65 per cent of each of their recruited victims’ investments. He is believed to have personally received at least $1.6 million from the scam.

Victims received notification of Moore’s death on June 27 from the US Department of Justice via email and text message, and told there would be no further notifications made on the case.

In 2020, a four-year prison sentence was handed down to Moore’s co-conspirator Savraj ‘Sam’ Gata-Aura, who prosecutors estimate earned about $3 million from the fraud that offered investment units in Istanbul, New York, San Francisco and London.

Further arrests

Meanwhile, two other Britons arrested in Spain and extradited to the US in November 2022 for their role in supplying selling agents via UPG are due to be sentenced later this year.

In May, UK citizens James Robinson and David Kennedy pled guilty to engaging in a conspiracy to defraud victims by making material misrepresentations about the management and operations of Bar Works and UPG.

In exchange for millions of dollars in commissions, Robinson and Kennedy worked alongside Moore and Haddow, soliciting investments into workspace leases in Bar Works.

Through UPG, Robinson and Kennedy recruited agents to sell the leases and knowingly provided victims with fraudulent documents and other information.

An account controlled by the pair received more than $2 million in commissions, the US Dept of Justice said, after encouraging investors to pump more than $7.5 million into the doomed scheme.

Both men pled guilty to conspiracy to defraud investors and are scheduled to be sentenced on September 25, 2024.

Speaking at the men’s trial in May, US Attorney Damian Williams said his office was committed to bring justice to victims, some who have died since proceedings began.

“James Robinson and David Kennedy partnered with notorious fraudster Renwick Haddow and used their agent network in Spain to launch a massive Ponzi scheme that lured hundreds of investors from around the world,” he said.

“Every perpetrator of fraudulent investment schemes will be held accountable, no matter where they operate.”