6 Pinoys scammed of P4.4M by Dubai-based 'kababayan' seek legal action

DUBAI, United Arab Emirates – He strutted around all cleaned up in brand name clothes; was operations manager of two popular restaurants; and was an officer of a business group. He opened a bar and convinced fellow Filipinos to invest in his venture. He seemed legit except that he has not showed up after getting the money. 

Four Filipino expats here – as well as two businessmen in the Philippines – are seeking legal action against the alleged fraudster who, they claimed, robbed them of P4.4 million in what appeared to be a cunningly devised investment scam that capitalizes on trust and the promise of good returns.

“Hindi ko in-expect na magagawa niya 'yun (I did not expect he could do that). He was known as an officer of (the business group) and he appeared very professional,” said 52-year-old Gilbert Espiritu of the alleged scammer, whom he had been friends with for the past five years and who took off with a total of P2.8 million that the OFW had given in five smaller amounts as investments. 

“I felt betrayed. How could a trusted friend do this kind of thing?” said Espiritu, one of the victims who is also the executive vice president for HR and admin at an insurance company. 

The other Filipinos, an architect, an aeronautics engineer and his wife, all staying in Dubai, and two businessmen in the Philippines, lost AED1.6 million to the alleged scammer, it was learned.

The aeronautics engineer and his wife had only known the alleged fraudster for two years, having met him at the business group, where he was holding a position at the time, and during which he talked them into investing money in his bar, GMA News Online learned.

“Then he disappeared without informing the investors,” a source said.

The alleged scammer’s ploy was not to have all would-be investors together in meetings so that none could get the whole picture, it was also learned. This prompted officials to note that there could be more victims out there.

Investment

Meanwhile, Espiritu said he signed a three-year agreement on July 1, 2021 with an annual fixed return of 20% of the AED25,000 (P378,700) he invested in an Al Barsha cloud kitchen that the suspected swindler had set up prior to the bar. 

Espiritu said he made another investment amounting to P25,000 under the same terms on Aug. 1, 2022 and then still another on Dec. 9, 2022 for AED10,000 (P151,400). On Dec. 17, 2022, Espiritu invested AED56,000 (P847,900) more.

In all, Espiritu said he had invested AED116,000 (P1.75 million) for the cloud kitchen.

“I received something in 2022 and 2023,” he said, referring to profits.

On August 28, 2023, Espiritu invested AED66,000 (P999.200), this time for the bar that opened in September of the same year.  Total investment he has made for the cloud kitchen and the bar was AED182,000 or P2.8 million.

Shut down

Unfortunately, the bar which was located in Deira, shut down in December due to mismanagement, Espiritu said. 

“We knew that he was taking home the nightly sales as well as cash payments for private bookings and special events held there,” he said, adding that the bar’s staff, approximately 40 in all, from entertainers to waiters and kitchen crew, among others, were not given their salary covering three months.

“Some have gone back to the Philippines. The others have found new jobs. All of them did not receive their salaries for three months since October 2023. Those staying in the provided accommodation had to pay for themselves because the company had not been able to shoulder the payments,” said Espiritu.

Assurances

“He gave us assurances that the bar will open again by getting new investors. But he left Dubai in March 2024, saying he will be off for his birthday. He never came back and is now nowhere to be found,” Espiritu said.  

Espiritu said he received an email from the alleged scammer on July 27, 2024 proposing to fully compensate everyone after five years.

Espiritu said he’s not counting on it because “there is no guarantee.” He said he has been in talks with his lawyer, who is carefully reviewing the matter. He added that he has likewise sought assistance from the Philippine Consulate General in Dubai and was advised to file a police case.

“I am also reviewing my legal options in the Philippines,” Espiritu said.  “All we want is for him to face us and take responsibility for his wrongdoings.  I lost almost P3 million for this investment.  If it was mismanagement from his end, he should take action and accountability, inform us and not run away from it,” he added.

There was a seventh victim, also a Filipino who lost all kitchen equipment he had invested in the bar when it closed. “Wala nang gamit duon days after i-close. Kinuha lahat,” said the expat, a sales and marketing director at a care box company. (It’s all gone days after it closed. Everything was taken.)

A Dubai-based Filipino businessman almost fell for the alleged scammer’s scheme, “but I got suspicious,” he said. —KBK, GMA Integrated News