Dubai Court Jails Ex-manager, Orders Dh2.3M Payout in Embezzlement Case

A former accounts manager in Dubai has been ordered to pay Dh2.3 million in compensation after being convicted of embezzling more than Dh2.1 million in customer payments during his employment, in a case that also led to his imprisonment and deportation.

The Dubai Court of First Instance awarded the company Dh2.3 million in damages, covering both material and moral losses, along with 5 per cent annual interest until the amount is fully paid. The court also ordered the defendant to bear court costs and pay Dh2,000 in legal fees.

The civil ruling follows a criminal conviction in which the former employee was sentenced to three months in jail, fined Dh2,107,250 — equivalent to the amount he was found to have misappropriated — and ordered to be deported from the UAE. The Court of Appeal and the Court of Cassation later upheld the conviction, making it final.

According to court records, the case began in September 2023 when the manager of a Dubai-based freight services company filed a complaint with Al Muraqqabat Police Station after noticing discrepancies in the firm’s financial collections.

An internal investigation found that the accounts manager had been collecting payments from customers but either depositing reduced amounts into company accounts or failing to deposit the funds altogether. Authorities concluded that the total misappropriated sum was Dh2,107,250.

Public prosecutors charged the employee with embezzlement, alleging he abused his position of trust to unlawfully appropriate company funds collected on behalf of his employer.

In November 2023, the Dubai Criminal Court convicted him and imposed a three-month prison sentence, a fine equal to the amount involved, and deportation after completion of the sentence.

The conviction was subsequently upheld by both the appellate court and the Court of Cassation, confirming the judgment as final and binding.

The company later filed a civil lawsuit seeking compensation for losses arising from the embezzlement.

In its ruling, the civil court held that the criminal conviction had conclusively established the employee’s liability, and that the company had suffered direct financial losses due to the unlawful appropriation of its funds.

The court also noted the wider impact of the offence, including the company’s inability to use and invest the missing funds, reputational damage, and expenses incurred in pursuing both criminal and civil proceedings.

On this basis, the court awarded Dh2.3 million in compensation, along with 5 per cent annual interest until full payment, in addition to court costs and legal fees.

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