URGENT ADVICE NEEDED.... to get the money out from an Ajman developer (Not Albaraka)

[rizwan]

Hi everyone ,

I need your advice as i am in serious trouble.i would highly appreciate your help.

I have done a Buy bcak Deal (750,000 derhams ) with Ajman Based devloper Al-Farooq Real Estate & Investment LLC . i was given two cheques one for the total amount invested which is due on the Feb 26th 2009 and the second for the profit which is dated 26th of March.

Today i received an email from the developer asking me not to deposit the cheque on the due date. as they are unable to pay due to the financial crises. the devloper has asked for 3 months grace period as they are looking for ways to deal with problem.

I am totally shocked and panicing as this is a major share of my life saving..

Could anybody advice me what to do in this situation. I reside in UK.

1. what will happen if i deposit the cheque.
2. what if he doesnt pay my money on time.
3. there is no guarantee if situation will be better after 3 months.

Your advice would be highly appreciated.

Kind Regards
Rizwan (riz.prop at gmail dot com )

 

[Chaz_The_Sun]

I'm sure there are lots of people on here who would be happy to help, but if it were me in your position, given the money at stake, I would take professional advice immediately.

I couldn't tell you exactly who you'd need to speak to (perhaps someone else can),but the sooner you fully understand your position the better.

 

[rizwan]

i appreciate your reply and i look forward to hearing from more people who can give their valuable opinion.

 

[financier888]

Hi everyone ,

I need your advice as i am in serious trouble.i would highly appreciate your help.

I have done a Buy bcak Deal (750,000 derhams ) with Ajman Based devloper Al-Farooq Real Estate & Investment LLC . i was given two cheques one for the total amount invested which is due on the Feb 26th 2009 and the second for the profit which is dated 26th of March.

Today i received an email from the developer asking me not to deposit the cheque on the due date. as they are unable to pay due to the financial crises. the devloper has asked for 3 months grace period as they are looking for ways to deal with problem.

I am totally shocked and panicing as this is a major share of my life saving..

Could anybody advice me what to do in this situation. I reside in UK.

1. what will happen if i deposit the cheque.
2. what if he doesnt pay my money on time.
3. there is no guarantee if situation will be better after 3 months.

Your advice would be highly appreciated.

Kind Regards
Rizwan (riz.prop at gmail dot com )

If you deposit the check and it bounces, you can file a police report and the guy can go to jail until you get paid - but this does nothing to get your money back. Better to hold off and try to work with him

He may not be able to pay you ontime due to the changes in the market which was out of everyones control.

There are NO guarantees...

If I were you, I would forget the profit promised and try to work out a repayment schedule of your original investment and consider yourself very luck if you get that back.

 

[Ajmanprop]

Rizwan:
If you like - I can send you contact info for a law firm (Habib Al Mulla). They should be responsive via email, and will let you know if they will take the case.

Basically, depositing the cheque in Dubai - having it bounce and then filing a police report - will allow you to place a travel ban on the issuer / principal. This way, you can at least be sure that they don't abscond, leave the UAE - assuming they have not already. If the developer subsequently pays you, you can drop the charges, they'll have the ban etc. lifted. Sounds like your best leverage is to present the cheque - but get legal advice. By the way, in order for you to report to the police - no lawyer is necessary, although you probably need to be in Dubai yourself, or have someone locally do it for you.

Ironically, I have had to hire a law firm - to help me retrieve the post dated cheques that I have issued - installment payments to a developer who will not / has not started building, and won't return the cheques. I have not let them bounce, or close the account.

Regards

 

[Ajmanprop]

One more thing -

There is someone on the forum Memo123 - who had a problem with Al Barakah, and actually flew to the UAE, called the police station etc... and handled bounced cheques. A lot of that individual's experience should be helpful to your situation.

You may want to send Memo123 a private message, or hopefully he/she will notice your post and comment.

 

[naxal]

Hi Financier888

If you deposit the check and it bounces, you can file a police report and the guy can go to jail until you get paid - but this does nothing to get your money back. Better to hold off and try to work with him

He may not be able to pay you ontime due to the changes in the market which was out of everyones control.

There are NO guarantees...

If I were you, I would forget the profit promised and try to work out a repayment schedule of your original investment and consider yourself very luck if you get that back.

While I was reading your phrase : 'There are NO guarantees' ......... I really want to ask this : Suppose after police report is filed and the issuer is jailed and even after all this ,he is not returning the amount due ............... Then is it true that in the end he is just sentenced to a few months in prison and finally deported ?

 

[financier888]

While I was reading your phrase : 'There are NO guarantees' ......... I really want to ask this : Suppose after police report is filed and the issuer is jailed and even after all this ,he is not returning the amount due ............... Then is it true that in the end he is just sentenced to a few months in prison and finally deported ?

When you signed the MOU - it is usually tied to a property - was this property in Ajman? If so, you have more risk as there is no escrow for sales - and it's sales proceeds that are used to repay the MOU...

Bouncing a check it quite serious here in the USA - the jail term is linked to the amount. It's its $1,000 - it may be a few months if it's $100,000 - it could be years.... i dont know the firm or the guy behind it, so I really cant comment but I would meet with him first before taking any action and talk to him - hear him out before running to police station to have him locked-up. I have other freinds who have various MOU's like this, and they are professional investors. They feel, it's better to try to work with them because they recognize what's happening in the market. The firms doing the MOU;s have equity in the land payments - so, there are assets but of course, you have to assess them on case by case basis.

filing a police case prematurely may push the guy against the wall and out of the country which will miminize your chances of recovery. He can't sort out the problem and seek solutions sitting in a prison cell. Meet with him in person and see what they say. At least they have given you advance notice and asking for time. if it was their intention to grab your money and run, they'd be gone already.

your call - go meet them.

BTW - i think that even if you go to jail for bouncing the check, you are still obgliged to pay not 100% sure, but you;'d need to consult an atty that knows the criminal law... Ususally, they must just visit him and give him a chance to cover the check but if there are no sales, he wont be able to do it.... He used the funds as bridge financing.. better to mee with him first face to face and check it out before acting in manner that you may regret later and lose any chance of recapture.

 

[swajidz21]

From Al-Farooq Real Estate & Ivestment LLC

Dear Mr. Rizwan

Its me Syed Wajid from Al-Farooq Real Estate & Investment LLC.

I think now you have much more advices from different corners of the world.

It is not suitable for you to damage our reputation in the International Market.

i dont know who are you and for whom you are doing like this.

I m waiting your response.

Hopuing you will contact me very soon.

Syed Wajid
Manager Finance
Al-Farooq Real Estate & Investment LLC
050-8012269

 

[siraj]

rizwan, if i were u...i wud take money invested and wait for 3 months to get the profit.coz if u have liquid in ur hand in recission u are one of lukiest person on earth.wait for 3 months n dan present da cheque to bank if it bounces take da case to the police....

 

[Heavenscent]

Seems Mr. Wajid doesnt find it "suitable" for you to tarnish his Company,s reputation... ask him to meet face to face and to give you a solution that is "suitable" for you...., at the moment - you are holding the trump card ....if he is genuine - he will agree....and if he finds a solution then we will "employ" his services and his solutions to solve the Al Barakah billion dirham dilemma! because we are getting nowhere!!!!! our damages to date are 1.4 billion AED, Dubai,s very own Madoff case!

 

[financier888]

Rizwan - chances are, that even in three months, the developer will NOT be able to honour your PDC. (if you indeed have one..which I think you stated you did) - the reason I am saying this, is because the developer planned to pay you back out of sales -which there are none and there won't be in the coming months ahead. It's a fact of life. I wouldn't expect to see any movement in the market till 4Q this year and even then, it will not be anything close to the previous years.

The global economy has gotten worse since Cityscape in Oct - and people weren't buying then. The market will take some years to recover. Unless your developer can secure finance, chances are - he won't be able to cover your check. (there is chance that he might but best to prepared in case he cannot) Many major reputable companies - with track records are having great difficultly in securing finance. (including Donald Trump!) You should meet with the developer and see if you can get the return of your orignal amount (principle) and be happy if you can.

This sudden shift in the marketplace has pulled the carpet out from under all the developers - his situation is not unique. Your main focus should be try to get back what you put it in and forgo any profit as I doubt it would be forthcoming.

good luck