Shahram Abdullah Zadeh

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Shahram Abdullah Zadeh (Born 1971) is a controversial businessman who has been under criminal
investigation throughout the United Arab Emirates (UAE). An article in the Wall Street Journal stated, "
Amid the movers and shakers of this glittering city, Shahram Abdullah Zadeh cut a wide swathe. He
cruised around Dubai in a white Bentley and dined with royalty as his company developed one of the
emirate's premier office complexes. But last February, a phone call from Dubai's state security effectively
ended it all [1]."

Early Years

Zadeh was born in Dubai to Iranian immigrant parents in 1971. His father ran a small two-star hotel for
Iranian businessmen called the Tara Hotel, which he managed for many years. In one interview, Zadeh
spoke of his parents’ vast real estate holdings and his costly education. Official documents and interviews
confirm that Mr. Zadeh attended secondary school at the Cambridge School in Rashidiya during the 1980s.
Following his education at the Cambridge School, Shahram Abdullah Zadeh moved to the Czech Republic
to further his education at Masaryk University, graduating from the school’s Faculty of Medicine in 1999.
Mr. Zadeh has been accused of exaggerating his education and achievements. Inquiries confirm that Zadeh
is not noted in the Czech Medical Chamber, which is a prerequisite for medical practice in the Czech
Republic, and in Dubai. To many in Dubai’s elite, he is noted as describing himself as Dr. Zadeh, the
psychologist and Dr. of Finance, but records at Masaryk confirm that he did not study psychology, finance
or business during his tenure there. This background, Zadeh said in several interviews, provided him with a
better understanding of those he was involved with in real estate deals.

In 2002, Zadeh moved back to Dubai from the Czech Republic and began working as a real estate agent
within Dubai’s Iranian community. Sources suggest he garnered much recognition for himself by making
money in a booming real estate market for "those that mattered." Reports confirm that in 2004, an old
friend of Mr. Zadeh's father brokered an introduction with Sheikh Hasher, the brother-in-law of Dubai’s
ruler. The sheikh owns Al Fajer Enterprises, a conglomerate that includes a large construction and
contracting arm.

Al Fajer Properties Partnership

In affidavits filed with Dubai's prosecution office, Mr. Zadeh contends that he and Sheikh Hasher verbally
agreed to a partnership, signing a contract on Feb. 1, 2006. According to [2] Sheikh Hasher bin Juma'a Al
Maktoum, a member of the Royal family of Dubai was tricked by Zadeh’s tales of grandeur and hired him
to run his development company, Al Fajer Properties. The partnership, Mr. Zadeh says, established the two
men as co-owners of Al Fajer Properties. Under the agreement, the men would split profits equally and
would invest equal amounts of capital. The contract named Mr. Zadeh as chief executive. By 2008, the
company appeared to be making money and several intriguing projects were under construction.

The Alleged Scandal

According to an article in Forbes, in mid 2008 an employee pointed out to Sheik Hasher bin Juma'a Al
Maktoum that the company’s cash situation was dire. Documents including bank statements, company
contracts and employee interviews drafted by an auditing firm suggests that Zadeh allegedly forged
company contracts, kept fraudulent, unaudited accounts and moved money back and forth between Al-Fajer
Properties and other companies owned by him. Sources close to Al-Fajer said the new president, Maktoum,
was called in by his father to investigate this problem. Sources say the investigation discovered that Zadeh
had funneled hundreds of millions of dollars out of Al Fajer, pocketing over $100 million for himself. The
scam was allegedly carried out as follows: Zadeh would purchase real estate using Al Fajer funds and then
sell it to private clients through one of his several shell companies, IBC Ltd FZCo and Diamond Steel
FZCo. If this is accurate, the scam allowed Zadeh to skim millions of dollars in profits that belonged to the
company. He would then put the money he took out of the company back in as personal equity, making it
look as though he were investing in the business.

Post Al Fajer Scandal

In 2008, Zadeh was jailed as accountants from Al Fajer put together the pieces of what was a possible fraud
committed against the company. But as government investigators were delayed as they tried to untangle
Zadeh’s web of transactions and shell companies, they were forced to release him. His passport was
confiscated and the courts ruled that he was banned from leaving the country until the investigation was
finalized. Forbes printed quotes from Zadeh in which he alleged that he was “the sole investor in Al Fajer.
Sheik Hasher Maktoum has not invested a single dirham into the company,” he said to Forbes [3]

Zadeh then filed to sue Al Fajer Properties for $1.9 billion. Since there were no signed agreements with the
Sheikh, which is supposedly common practice for older Arab businessmen, Zadeh accused the Sheikh of
hiding it. He then put together some affidavits and went to the courts. Following the suit filing, Zadeh
convinced a contact still working at Al Fajer, an assistant sales administration manager named Mohammed
Salloum, to e-mail him a list of investors involved in an Al Fajer development called the Ebony and Ivory
Towers. With the investor list, Zadeh supposedly orchestrated a public relations nightmare for Al Fajer.
Dubai9Stars reports that Zadeh rallied investors against Al Fajer, setting up group Web sites and enlisting
over-leveraged investors in Dubai real estate to be the face of his operation.

Help from Leigh Jones

Sources suggest that Zadeh then involved Leigh Jones, a British national and a former secretary at Al Fajer
Properties in his campaign. After Zadeh was removed from Al Fajer, Jones remained in her position at the
company. Theories held by people close to this matter suggest that Jones worked as an operative for Zadeh,
deleting company files—which were later uncovered by computer forensics investigators—and making
paper files disappear. Theories also suggest that Zadeh proposed Jones leave Dubai and provide supporting
evidence for his court case against Al Fajer in the form of affidavits, which she later submitted from
London. With Jones outside of Dubai, it would be impossible for investigators to interrogate her regarding
the claims. Though Jones had already told investigators in Dubai that she didn’t have knowledge of the
inner-workings of the company, she would later say in interviews that she lied in fear of the Sheikh. As part
of their deal, Zadeh would provide Jones with financial compensation.

In early 2009, Leigh Jones has again been noted in changing her story, this time turning on Zadeh by
cooperating with investigators in Dubai. Auditors have now had ample time to review Al Fajer’s financial
documents. They have gathered evidence proving that he illegally funneled money out of the company and
he is now officially wanted on criminal charges in Dubai. The case has been bolstered by other victims,
mostly Iranians, coming forward with allegations of fraud against Zadeh. One investor claims he was
bilked of more than $400 million by Zadeh. Complaints have been filed with Interpol by numerous
investors in Iran. Though his Iranian passport was confiscated, Zadeh managed to flee the United Arab
Emirates with a Czech Republic passport, despite the fact that Czech laws prohibits wanted criminals from
obtaining them. A source in Dubai, familiar with his business, said he had acquired the Czech passport after
marrying a Czech woman. Interpol has requested the UAE authorities to arrest Abdullah Zadeh over
commercial disputes with Iranian companies.

Western Deceit?
Following his jailing in 2008, Mr. Zadeh began spreading his story throughout the Western press. Zadeh,
the middle-class son of Iranian immigrants who was born and raised in Dubai, was referred to by The Wall
Street Journal as an “elite expatriate."[4] Forbes printed quotes from Zadeh in which he alleged that he was
the sole investor in Al Fajer. "Sheik Hasher Maktoum has not invested a single dirham into the company,”
he said to Forbes. In fact, a recent edit to Shahram Abdullah Zadeh's Wikipedia page confirms that Mr.
Zadeh continues to spread his side of the story throughout whichever media and internet outlet will allow it.
The recent edit can be found word for word on saudiwave.com, or reads as follows:

"In this Gulf city-state, two things have long been untouchable: business interests and the ruling
family. However, an attempt to sue a member of the family over an alleged financial swindle is a
sign of how much the economic crisis has rattled business as usual here.

Shahram Abdullah Zadeh accuses the brother-in-law , Sheikh Hasher Maktoum Al Maktoum, of Dubai’s
emir, illegally of taking over his real-estate firm Al Fajer Properties and having him detained by police to
help the swindle.

Zadeh, a 37-year-old Iranian national who has lived in Dubai all his life, brought a civil case against the
brother-in-law and his son Sheikh Maktoum Hasher Maktoum Al Maktoum to get his firm Al Fajer
Properties back, a rare move. Even more surprising, Shrahm Zadeh tried to raise criminal charges, but that
step went nowhere because prosecutors rejected it. The case has raised questions about whether Dubai
really is what it claims to be: A boomtown where international businessmen can safely invest and turn a
profit; or rather, a nest of cronyism and connections where royal blood can still trump entrepreneurial
effort.

Such questions were largely ignored by everyone – businessmen and politicians alike – as long as the cash
was rolling in during Dubai’s stunning expansion over the past decade. But now the emirate has hit the
skids in the world financial crisis. “During the boom, Dubai’s shortcomings were glossed over, but now
that the economy is struggling, it’s becoming a different story,” said Christopher Davidson, an author of
two books on the United Arab Emirates and a lecturer at Durham University in Britain. Dubai’s emir, Sheik
Mohammed bin Rashid Al Maktoum, led the emirate’s vast financial ambitions. But business ran far ahead
of the effort to modernize legislation in what remains a traditional Arab monarchy, where the ruler and his
family hold final say.

Now the government has been trying to rein in some fast-and-loose business practices. About a dozen
former executives are in custody for various investigations. Some have close ties to the government, but
none of those in custody are related to the ruling family.Zadeh’s case goes farther – breaking to taboo of
questioning Dubai’s leadership. Zadeh says he’s a victim of a system in which the rulers can manipulate
police and the courts to protect their business. “If Dubai cannot provide security for foreign investors, they
might as well switch off all the lights,” he said. Attempts over the past weeks by The Associated Press to
contact the brother-in-law, Sheikh Hasher Maktoum bin Juma’a Al Maktoum, were unsuccessful. Hasher
Maktoum Al Maktoum and his company attorneys did not return repeated phone calls or respond to
interview requests.

In the first session of Zadeh’s civil case, Hasher Maktoum Al Maktoum and his lawyers failed to appear. In
the second a week ago, his lawyer asked the court for more time to study the allegations. The case is to
resume May 4. Zadeh and the Sheikh Maktoum Hasher Al Maktoum went into business in 2004.
Foreigners are allowed to deal in property only after finding an Emirati sponsor to officially register a
company. The usual practice is for the Emirati sponsor to give his signature for an annual fee or profit
share. Several members of the sprawling ruling family are involved in such deals. Zadeh set up a firm, Al
Fajer Properties, and was chief executive while Sheikh Hasher Maktoum Al Maktoum held the trade
license. The firm was profitable and is now worth about $2 billion, according to Zadeh. But the partnership
soured over delays in building a commercial tower, Juemirah Business Centre. Zadeh said in an affidavit to
Dubai’s attorney general that he was arrested in February 2008 and held for 60 days. He says he was never
charged with any crime but was questioned over his business – including the combination of his safe.
While Zadeh was in detention, Sheikh Hasher Maktoum Al Maktoum took over the company Al Fajer
Properties by appointing his son Sheik Maktoum Hasher Maktoum Al Maktoum as chief executive, ousting
Zadeh, according to Zadeh’s filing. When he was released, Zadeh says he found his office safe had been
cleaned of documents showing he was the owner of Al Fajer Properties and Hasher Maktoum Al
Maktoums partner. Zadeh also says police tried to push him to sign a document saying he had no
connection to Al Fajer Properties. He submitted to the court. Al Fajer documents listing him as CEO and
transactions that his lawyers contend show he was the sole investor.

The Associated Press was given a copy. Sheikh Hasher Maktoum Al Maktoum “thought he could do it all
because he’s a Sheik,” Zadeh said. Police refused to comment on whether Zadeh was detained. Shahram
Zadeh says they continue to hold his passport and so far he has had little luck pushing his claims. He
submitted a criminal complaint but the attorney general refused to investigate, giving no reason. Zadeh then
filed a complaint directly to Dubai’s emir, who holds what is called the Ruler’s Court. Residents can bring
to the emir what they believe are injustices unaddressed by the courts – from disputes over money to
wrongful deaths. Zadeh says he has received no response."

Other Criminal Cases

According to a report in the Gulf News, "Shahram Abdullah Zadeh was arrested and questioned in the UAE
over business relations with the Iranian Revolutionary Guard Corps in violation of the United Nations
Security Council Resolutions 1737 and 1747," a source familiar with the case said on condition of
anonymity. Abdullah Zadeh, the source added, used his Dubai-based businesses to enter into deals with the
IRGC, especially in the oil sector. "Abdullah Zadeh backs the Iranian Revolutionary Guard Corps and
signed deals with them in oil investments. He set up a company in Dubai and signed contracts with the
Oriental Oil Company, affiliated to the IRGC and owned by Morteza Rezaie, deputy commander of the
IRGC," the source said.

UN Security Council resolutions 1737 and 1747 place economic sanctions on Iran and prohibit UN member
states from supplying Iran with any material or technology that might contribute to nuclear weapons
development. The resolutions also call on member states to freeze the assets of particular individuals and
entities with ties with Iran's nuclear programme, including the IRGC and its affiliates. The IRGC is
believed by the West to be taking the lead in Iran's nuclear programme, and its influence in Iran's political
and economic spheres has grown significantly recently. Sources said Abdullah Zadeh also had links with
Al Mustad'afeen (the oppressed), an investment arm of the IRGC.

UAE authorities had information implicating Abdullah Zadeh in other criminal activities concerning real
estate bribery and corruption, irrelevant to the state security suspicions. Hussain Haider, a spokesman for
the Iranian embassy in Abu Dhabi, said: "The embassy has no information about his whereabouts or his
alleged links with the Iranian Revolutionary Guard Corps." According to a statement in the Gulf News,
Zadeh's lawyer, Salem Al Sha'ali, declined to comment on the developments and an email to Abdullah
Zadeh was not returned. Iran has been at the centre of an international dispute over its nuclear plan. The US
and its Western allies accuse Iran of secretly developing nuclear weapons under the disguise of a civilian
programme.[5]

References

1. ^ http://www.forbes.com/2009/03/03/dubai-royal-showdown-business_al_fajer.html
2. ^ http://dubai9stars.blogspot.com/
3. ^ http://www.forbes.com/2009/03/03/dubai-royal-showdown-business_al_fajer.html
4. ^ http://online.wsj.com/article/SB123457503562586691.html
5. ^ http://gulfnews.com/news/gulf/uae/crime/businessman-flees-uae-over-iran-link-1.640747

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