A businessman from Dubai issued a check to his wife, but subsequently persuaded bank employees not to cash it.
A 75-year-old businessman was sentenced in Dubai to one year probation for the unsecured check that he handed to his wife.
The accused handed over to his wife an unfilled check for payment of real estate abroad. The man allowed her to enter the required amount on her own. The woman indicated 5 million dirhams ($ US 1.36 million) and took the check to the bank.
The manager, responsible for the businessman’s expense, contacted him by phone and said that his wife was asking for cash. The businessman asked the manager to withdraw the check and suspend the process of issuing funds.
The wife was forced to wait at the bank for four hours, during which her husband managed to contact the police with a statement about the loss of the check. The woman filed a written complaint with the Central Bank and the prosecutor's office. After lengthy and thorough investigations, the businessman was accused of issuing a check to his wife, which he himself later instructed not to cash out.
The Dubai Violations Court found the defendant guilty of signing the check and sentenced him to one year in prison. However, the presiding judge replaced the real term with a suspended one, finding grounds for leniency.
Protection of the businessman’s wife requires compensation in the amount of 20 thousand dirhams ($ US5.4 thousand). Meanwhile, the businessman filed a criminal lawsuit against his wife, accusing her of misappropriating a check. The lawsuit was rejected.
According to Olga Melnik, senior specialist for non-standard solutions at VIRTUZONE Elite, checks are one of the reasons why nominee services are not popular when registering a company in the UAE, as the company’s nominee director may be responsible if issuing unsecured checks from the company. But there is also encouraging news for business: since last year, in accordance with the decision of the Attorney General of Dubai, a number of minor offenses, including the issuance of unsecured checks, are no longer subject to criminal prosecution. The prison term for such crimes shall be replaced by a fine.
