17-02-2017, 09:45 AM
Thousands of victims of the Sunfeast Infotech scam in Dubai may never recover the millions that sank into an elaborate Ponzi scheme. The reason: There is no money left and no one to turn to.
Raja and Veer Kumar, the two Indian owners of the dubious firm, have been held in bars since April 29 and the only point of contact for investors, marketing manager Radhai Gopalakrishna has been cut off suddenly.
For days, investors had deposited money in Radhai, who had assured them repeatedly that they would be returned in full.
But its inexplicable silence has left investors in a dilemma.
To the left without option, hundreds of victims went to the police station of Al Rifa'a on Tuesday and Wednesday in the fervent hope of recovering their money. But they seem to have missed the bus.
Last week dozens of claimants were reimbursed their principal amount, but those who went to the police station this time did not get anything.
Until last Wednesday, a dedicated Sunfeast staff was assigned to the police station to deliver money to claimants against bills and notebooks.
That is not the case anymore.
It is understandable that many victims blame Radhai and founder of an investor's Google forum, Babar Yaqub, for deterring them from approaching the police.
It was a silly gesture when we lost everything.I wish I had submitted a report before, "said Filipino Joe, who had put in Dh100,000 borrowed from a loan shark.
An Indian woman who lost Dh55,000 blamed Babar and Radhai for giving them false hope.
"They are directly responsible for my desperate situation," he said, holding back tears.
But Babar said it is unfair to point him out. "Sunfeast had been supporting investors for a year, so I stayed with them. I tried to help them overcome the crisis so they could give us back, but now we have no choice but to execute our Plan B, we will proceed legally," he said. The XPRESS.
Obviously, the backup plan has arrived a little late in the day. "What's the point of filing a report now when the money they had, has been disbursed? Plan B should have been Plan A," said one angry Nigerian man, one of the hundreds of members in the Google Group forum .
Many disgruntled victims expressed similar views.
Calls made to Radhai by XPRESS were left unanswered. However, he sent an SMS saying that investors can not be returned unless one of the owners of the company is released. "Any cash flow is possible only with their signatures and presence," he said.
An attorney familiar with these cases said he doubted there was money for the newcomers. "Sunfeast had no business model - it was just revolving money taking new investor money to pay old people - there's no way they can reimburse everyone.
The Sunfeast scam, possibly the largest in the country, has left behind a trail of 6,000 devastated families. Many used their life savings and borrowed from banks and lenders to buy non-profit "home-based typing jobs" sold by the company before it was closed by the Dubai Economic Department last month.
Raja and Veer Kumar, the two Indian owners of the dubious firm, have been held in bars since April 29 and the only point of contact for investors, marketing manager Radhai Gopalakrishna has been cut off suddenly.
For days, investors had deposited money in Radhai, who had assured them repeatedly that they would be returned in full.
But its inexplicable silence has left investors in a dilemma.
To the left without option, hundreds of victims went to the police station of Al Rifa'a on Tuesday and Wednesday in the fervent hope of recovering their money. But they seem to have missed the bus.
Last week dozens of claimants were reimbursed their principal amount, but those who went to the police station this time did not get anything.
Until last Wednesday, a dedicated Sunfeast staff was assigned to the police station to deliver money to claimants against bills and notebooks.
That is not the case anymore.
It is understandable that many victims blame Radhai and founder of an investor's Google forum, Babar Yaqub, for deterring them from approaching the police.
It was a silly gesture when we lost everything.I wish I had submitted a report before, "said Filipino Joe, who had put in Dh100,000 borrowed from a loan shark.
An Indian woman who lost Dh55,000 blamed Babar and Radhai for giving them false hope.
"They are directly responsible for my desperate situation," he said, holding back tears.
But Babar said it is unfair to point him out. "Sunfeast had been supporting investors for a year, so I stayed with them. I tried to help them overcome the crisis so they could give us back, but now we have no choice but to execute our Plan B, we will proceed legally," he said. The XPRESS.
Obviously, the backup plan has arrived a little late in the day. "What's the point of filing a report now when the money they had, has been disbursed? Plan B should have been Plan A," said one angry Nigerian man, one of the hundreds of members in the Google Group forum .
Many disgruntled victims expressed similar views.
Calls made to Radhai by XPRESS were left unanswered. However, he sent an SMS saying that investors can not be returned unless one of the owners of the company is released. "Any cash flow is possible only with their signatures and presence," he said.
An attorney familiar with these cases said he doubted there was money for the newcomers. "Sunfeast had no business model - it was just revolving money taking new investor money to pay old people - there's no way they can reimburse everyone.
The Sunfeast scam, possibly the largest in the country, has left behind a trail of 6,000 devastated families. Many used their life savings and borrowed from banks and lenders to buy non-profit "home-based typing jobs" sold by the company before it was closed by the Dubai Economic Department last month.