Dubai: Investors lose millions of dirhams as brokerage firm vanishes overnight
A black garbage bag and a mop resting inside a bucket lean against suite 302 at Capital Golden Tower — the only remnants outside Gulf First Commercial Brokers' now-abandoned offices in Business Bay.
Until last month, around 40 employees filled suites 302 and 305, relentlessly cold-calling investors with forex offers. Today, both spaces stand empty: phone wires ripped from walls, dust coating the floors, and millions in investor funds gone without explanation.
Among the scores left in limbo are Keralite expats Mohammad and Fayaz Poyyl, who invested $75,000 between them. "I came here looking for answers, but there's nothing, no one. Just empty offices. We called every number, no one responds" said Fayaz, standing outside the doors. 'It's like they never existed.'
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The scheme's mechanics are now coming to light. Sanjiv, another Indian investor, described how Gulf First Commercial Brokers aggressively pushed clients toward Sigma-One Capital, an unregulated online platform. "They guaranteed safe returns," he said, explaining how repeated assurances convinced him to invest his life savings.
Mohammad, who lost $50,000, revealed staff used the names Gulf First and Sigma-One interchangeably, claiming they were the same operation.
A police complaint has been filed against both firms.
Investigations confirm Sigma-One Capital operates without DFSA or SCA authorisation.
The company claims a St. Lucia registration and a Bur Dubai office in Musalla Tower, but no such office exists. In fact, there are no records of the company ever operating there. "I wish I'd checked their credentials," said another investor. "Now we're left with empty offices and emptier bank accounts."
Familiar playbook
The scam follows a familiar pattern. In March, Khaleej Times uncovered how UAE residents lost millions to dubious platforms like DuttFx and EVM Prime— all promoted through cold calls promising "secure trading environments".
Victims typically maxed out credit cards or took loans, only to discover the companies' Dubai offices were fictional. Investors suspect these operations belong to the same syndicate.
Fayaz and Mohammad said they were convinced to invest purely based on phone conversations. 'My relationship manager convinced me to make an initial deposit of $1,000. Over time, I was pressured into adding more funds, lured by the illusion of smooth trading and early profits,' Fayaz recalled.
An investor who lost over $230,000 (Dh844,777) to Sigma-One Capital said the company paired him a relationship manager who spoke his native Kannada and promised incredible returns. "The platform showed small profits at first, and I even withdrew some money — just enough to build trust," the investor recalled. "Then the pressure started. They blocked withdrawals and pushed me toward riskier trades while demanding more deposits."
The situation deteriorated as his relationship manager intensified demands. 'He kept urging me to invest more, while the trading platform began displaying irregularities. It even showed trades in obscure or non-existent assets like 'wheat.spot' — a discovery I made much later.'
Desperate to recoup losses, he drained his financial resources. "I used credit cards, bank transfers, even my wife's savings," he admitted. "Each deposit was supposed to be the last."
His story mirrors many others left financially ruined. AA now fields daily calls from creditors after borrowing from friends and taking a personal loan to invest. Another victim faces bank lawsuits after maxing out two credit cards.
Security staff at Capital Golden Tower described a rushed evacuation. "They returned the keys, cleared everything out and left like they were in a hurry," said a guard. "Now we have people coming daily asking about them."
Sources reveal the operation followed a calculated script: Call centres would initiate contact, secure first deposits, then hand targets to relationship managers.
Khaleej Times tried reaching Sigma-One and Gulf First Commercial Brokers' employees. Most phones went unanswered; the sole respondent, a regional manager, hung up upon hearing "newspaper".
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