Bar Works investors who lost millions of dirhams in a hot-desking Ponzi scheme will likely recover a fraction of their investments, according to the US Securities and Exchange Commission.
A tax administrator, appointed by New York courts, will deduct a percentage from the $662,781 so far recovered from the scam, before it is re-distributed to victims.
The news is a blow to the scores of UAE investors, who had hoped for substantially more from the $37 million pumped into the fraudulent fund operated by British former accountant Renwick Haddow, 51.
It is painful, but we have to let it go in order to move on in life
Kamal Singh, who lives in Abu Dhabi, lost more than $150,000 to the fraudster after being sold investments by a brokerage in Dubai.
“After three years of waiting and continual extension to the court proceedings, we were not expecting to recover such a fraction of our original investments,” he said.
“This is a very frustrating outcome after waiting so long.
“Anything less than 10-15 per cent of what we had lost would have been disappointing, but this news is like rubbing salt into the wound.”
At least 40 investors have officially come forward from the UAE, with many more worldwide also caught up in the scam.
The recovered funds will only be distributed to those who have registered to the federal courts in America as creditors.
Income tax of between 10-12 per cent will then be deducted as the figure is likely to be well below the $40,125 threshold for higher tariffs of taxation.
The Bar Works scheme sold bogus investments in unused restaurants and bars in New York, San Francisco and Istanbul as temporary office space.
Haddow, who operated under the alias of Johnathan Black, was due to be sentenced in October, but that was pushed back to January to give more time to recover the remaining millions that appear to have vanished.
The Briton fled to Morocco, where he was arrested in an FBI sting operation in 2017 and extradited to the US. He now faces up to 40 years in prison in the US for wire fraud.
Two other men have already been convicted for their role in the scam.
Savraj Gata-Aura, 33, was sentenced to four years in jail while James Moore, 58, was convicted of one count of wire fraud and another of wire fraud conspiracy.
Moore, also British, was convicted in June last year after a week long jury trial but is yet to be sentenced.
Prosecutors said he received more than $1.6m in commissions from the scheme.
Sales events were staged at five-star hotels around the world, while brokers also pushed Bar Works investments.
New Jersey lawyers, acting on behalf of a group of investors from Dubai and Abu Dhabi, said an appointed tax administrator showed the courts were prepared to redistribute recovered funds, rather than use the cash to pay fines imposed on the defendants.
Once Haddow is sentenced, there is no longer an incentive for him to co-operate with federal authorities, limiting the chances of more funds being recouped, they said.
Jocelyn Houghton, a former Dubai cabin crew who is now a lawyer in Australia, said investors are facing up to the painful truth of losing most of their investment.
“After four years, countless emails and a lot of back and forth it seems way easier to invest $50,000 in a Ponzi scheme than try to recoup $1,000 after the fact,” she said.
“This has been a huge lesson to find out that of the total $37m scammed, just 1.8 per cent has been collected.
“It is hardly enough to satisfy even 13 investors.
“I’m in a WhatsApp group with 46 victims all in the same boat as me.
“It is painful, but we have to let it go in order to move on in life.”
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
MATCH INFO
Barcelona v Real Madrid, 11pm UAE
Match is on BeIN Sports
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
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The years Ramadan fell in May
UAE currency: the story behind the money in your pockets
Volvo ES90 Specs
Engine: Electric single motor (96kW), twin motor (106kW) and twin motor performance (106kW)
Power: 333hp, 449hp, 680hp
Torque: 480Nm, 670Nm, 870Nm
On sale: Later in 2025 or early 2026, depending on region
Price: Exact regional pricing TBA
Specs
Engine: Electric motor generating 54.2kWh (Cooper SE and Aceman SE), 64.6kW (Countryman All4 SE)
Power: 218hp (Cooper and Aceman), 313hp (Countryman)
Torque: 330Nm (Cooper and Aceman), 494Nm (Countryman)
On sale: Now
Price: From Dh158,000 (Cooper), Dh168,000 (Aceman), Dh190,000 (Countryman)
BIGGEST CYBER SECURITY INCIDENTS IN RECENT TIMES
SolarWinds supply chain attack: Came to light in December 2020 but had taken root for several months, compromising major tech companies, governments and its entities
Microsoft Exchange server exploitation: March 2021; attackers used a vulnerability to steal emails
Kaseya attack: July 2021; ransomware hit perpetrated REvil, resulting in severe downtime for more than 1,000 companies
Log4j breach: December 2021; attackers exploited the Java-written code to inflitrate businesses and governments
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How to donate
Send “thenational” to the following numbers or call the hotline on: 0502955999
2289 – Dh10
2252 – Dh 50
6025 – Dh20
6027 – Dh 100
6026 – Dh 200
The five pillars of Islam
1. Fasting
2. Prayer
3. Hajj
4. Shahada
5. Zakat
F1 The Movie
Starring: Brad Pitt, Damson Idris, Kerry Condon, Javier Bardem
Director: Joseph Kosinski
Rating: 4/5
Pharaoh's curse
British aristocrat Lord Carnarvon, who funded the expedition to find the Tutankhamun tomb, died in a Cairo hotel four months after the crypt was opened.
He had been in poor health for many years after a car crash, and a mosquito bite made worse by a shaving cut led to blood poisoning and pneumonia.
Reports at the time said Lord Carnarvon suffered from “pain as the inflammation affected the nasal passages and eyes”.
Decades later, scientists contended he had died of aspergillosis after inhaling spores of the fungus aspergillus in the tomb, which can lie dormant for months. The fact several others who entered were also found dead withiin a short time led to the myth of the curse.
Crops that could be introduced to the UAE
1: Quinoa
2. Bathua
3. Amaranth
4. Pearl and finger millet
5. Sorghum
Electoral College Victory
Trump has so far secured 295 Electoral College votes, according to the Associated Press, exceeding the 270 needed to win. Only Nevada and Arizona remain to be called, and both swing states are leaning Republican. Trump swept all five remaining swing states, North Carolina, Georgia, Pennsylvania, Michigan and Wisconsin, sealing his path to victory and giving him a strong mandate.
Popular Vote Tally
The count is ongoing, but Trump currently leads with nearly 51 per cent of the popular vote to Harris’s 47.6 per cent. Trump has over 72.2 million votes, while Harris trails with approximately 67.4 million.
Killing of Qassem Suleimani
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Tearful appearance
Chancellor Rachel Reeves set markets on edge as she appeared visibly distraught in parliament on Wednesday.
Legislative setbacks for the government have blown a new hole in the budgetary calculations at a time when the deficit is stubbornly large and the economy is struggling to grow.
She appeared with Keir Starmer on Thursday and the pair embraced, but he had failed to give her his backing as she cried a day earlier.
A spokesman said her upset demeanour was due to a personal matter.
The biog
Favourite films: Casablanca and Lawrence of Arabia
Favourite books: Start with Why by Simon Sinek and Good to be Great by Jim Collins
Favourite dish: Grilled fish
Inspiration: Sheikh Zayed's visionary leadership taught me to embrace new challenges.
SPECS
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The specs
Engine: 3.8-litre twin-turbo flat-six
Power: 650hp at 6,750rpm
Torque: 800Nm from 2,500-4,000rpm
Transmission: 8-speed dual-clutch auto
Fuel consumption: 11.12L/100km
Price: From Dh796,600
On sale: now
if you go
The flights
Etihad, Emirates and Singapore Airlines fly direct from the UAE to Singapore from Dh2,265 return including taxes. The flight takes about 7 hours.
The hotel
Rooms at the M Social Singapore cost from SG $179 (Dh488) per night including taxes.
The tour
Makan Makan Walking group tours costs from SG $90 (Dh245) per person for about three hours. Tailor-made tours can be arranged. For details go to www.woknstroll.com.sg
Match info:
Portugal 1
Ronaldo (4')
Morocco 0
The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
Dust and sand storms compared
Sand storm
- Particle size: Larger, heavier sand grains
- Visibility: Often dramatic with thick "walls" of sand
- Duration: Short-lived, typically localised
- Travel distance: Limited
- Source: Open desert areas with strong winds
Dust storm
- Particle size: Much finer, lightweight particles
- Visibility: Hazy skies but less intense
- Duration: Can linger for days
- Travel distance: Long-range, up to thousands of kilometres
- Source: Can be carried from distant regions
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