Investors left in lurch as company owner, staff 'disappear' with millions
Company owner and staff 'disappear' with millions, leaving investors in a bind
Up until last week, Blue Chip Group's third-floor office in Bur Dubai's Al Jawahar Centre was a hive of activity. Dozens of agents, all dressed formally, solicited capital for projects in the stock market, gold mining, cryptocurrency, and real estate, among other areas.
According to their website, Blue Chip has a portfolio worth seventy million dollars and more than 700 clients. They offered an enticing deal: a return of 3% per month on a minimum investment of $10,000, locked in for 18 months. But when payments abruptly ceased, leaving investors with bounced checks and unreturned calls, the promise went sour.
The owner and the majority of the office's 70 or so employees have mysteriously disappeared, leaving investors in a state of panic. A group of angry investors filled Blue Chip's office last week, but when Khaleej Times showed up, nobody was there.
Shareholders feel pain
An expat Indian was among them, and he was upset about the possible loss of Dh1 million. Pronounced as having invested Dh55,000 into the venture, which is now desperately needed for her father's surgery, Valentino, who was formerly Blue Chip's relationship manager, stood beside him. This devastated Valentino. I am at a loss as to what to say to my clients who are contacting me. We really need this money because my dad is in the hospital.
Some people had borrowed money against their credit cards to invest, like the Indians Maheej (Dh70,000) and Saiprava (Dh36,700). Some, like Ehtisham of New Delhi, even sold their homes to take advantage of the chance. Ehtisham used his day off from work at a Ras Al Khaimah shipping company on May 9 to go to Blue Chip's office and try to figure out what happened to the $132,000 (Dh485,000) that was given to him over the course of several months. I will be destitute if this money disappears. According to him, "It was everything I had." His voice quivered with emotion.
Just 90 people have put over $17 million into the venture, according to an Excel sheet that was shared with Khaleej Times.
“This is just the tip of the iceberg," commented Salim M., who put in $492,000. There are 345 investors in our WhatsApp groups alone. Take into consideration the sum if all of them are included. We still haven't contacted all of the investors, so this is by no means an all-inclusive list.
The company's founder and CEO is no longer allowed to travel, and there have been reports of multiple bounced check cases against the business.
A.K., who goes by his initials, mentioned that he thought it was a good idea to put his faith in Blue Chip back then. I feel betrayed now, though. I've learned a tough lesson.
Bollywood actress opens up about
Investors claimed that celebrity endorsements and corporate accolades influenced them to invest in different Blue Chip verticals when in fact they were misled.
Launched in July 2022 at a five-star Dubai hotel, the Blue Chip token was one such vertical; Bollywood actor Sonu Sood was the chief guest.
Yet, the actor has vehemently denied any endorsement from the business. "When we attend an event it doesn't mean we are endorsing it," Sonu told Khaleej Times during a phone interview from India.
Aware of the issue and "trying to help investors," the actor-turned-humanitarian stated. "We will do everything in our power to assist those who have been impacted by this," he declared. It should be noted that I am aligned with the investors and not the owners. It is only fair that everyone receive their money back.
Blue Chip initially specialized in commercial brokerage before expanding into other areas.
According to the investors, they will continue to receive payments every month or quarter until March 2024 as per their agreements.
They were in a state of panic when their checks began to bounce. On April 15 and 20, the company sent out "important announcement" emails, stating that further payouts would not be made due to regulatory issues.
Refunds would be processed through "legitimate channels within 7-10 days" according to the promises made by relationship managers. But on May 2nd, Blue Chip sent out yet another email promising investors a 10% refund via a trading wallet if they met certain trading requirements for six months.
Now, investors are saying that something is amiss. A lot of people expressed a preference for having the funds deposited into their bank accounts without delay. "We didn't sign up for any trading wallet," stated the IT engineer who invested $30,000 (Dh110,000) in 2021. According to another investor, the company should have confronted the investors instead of running away if their intentions were fair.
In order to "schedule a prior appointment" before visiting their "office to discuss any queries related to the refund process," Blue Chip is currently asking investors to do. "To expedite the refund process, it is imperative that all parties schedule an appointment," reads an email. The team may have trouble attending to you without an appointment. There is a link to schedule an appointment for "personalised attention," but it isn't working.
Messages sent to Blue Chip went unreturned, and no one from the company was available to comment.
Taken down from web-based surveillance program
Myfxbook, an online tool mainly used for tracking and analysing performance in the forex market, mysteriously removed Blue Chip Group of Companies from its listings on Wednesday, after they had been listed on Tuesday.
Securities and Commodities Authority (SCA), the UAE's federal financial regulatory body, has not issued a license to the business.
Century Maxim International (CMI) in Dubai is represented by Farhat Ali Khan, who focuses on commercial and financial disputes. Khan stressed that CMI's work is entirely regulated in the financial services sector. Ali asserted that the SCA guidelines make it abundantly clear that engaging in financial activities requires a license and/or approval from the relevant authority.
Comments