18-07-2025
UAE authority warns against unlicensed trading firms after KT reports
The UAE's financial regulatory agency has warned residents against dealing with three companies previously exposed by Khaleej Times for running unregulated trading operations that left scores of investors financially devastated.
In an advisory issued on July 17, the Securities and Commodities Authority (SCA) cautioned the public against engaging with Sigma-One Capital, Sigma Wealth World Financial, and Sigma One Cap Marketing Services, stating that none of them are licensed to conduct financial activities in the UAE.
"The SCA advises the investing public to refrain from dealing with these companies, as they are not licensed to conduct financial activities or provide services regulated by the SCA,' the regulator said, adding that it 'bears no responsibility for any transactions conducted with unlicensed companies.'
The warning comes in the wake of a series of Khaleej Times investigative reports over the past few months that uncovered how these entities — operating through a network of fake offices, shell companies, and offshore registrations — lured UAE residents into investing thousands of dirhams through aggressive cold calls and misleading online trading dashboards.
Our reports revealed how Gulf First Commercial Brokers, operating out of Capital Golden Tower in Business Bay, funneled investors to Sigma-One Capital, an unregulated platform claiming registration in St. Lucia. Scores of investors were left chasing shadows when Gulf First vanished overnight.
Among them were Keralite expats Mohammad and Fayaz Poyyl, who lost $75,000 each. 'Other victims shared similar stories. One lost $230,000 after being paired with a 'relationship manager' who spoke his native Kannada and lured him into making repeated deposits. Initially shown small profits, he was later locked out of his account.
Another Dubai resident who lost Dh150,000 was laughed at and abused when he questioned the scammer. 'They built trust slowly, then flipped overnight,' he recalled.
Khaleej Times also revealed how these platforms used a deceptive 'B-book' model, where the broker bets against the client and profits when the client loses. Several ex-employees of Sigma Marketing admitted to manipulating trades, delaying executions, and even displaying fake profits to trap investors.
Internal documents and whistleblower testimony pointed to at least seven call centres in Dubai serving as the operational backbone of the scam, recruiting hundreds of telesales agents, offering cash incentives for each converted lead, and paying commissions in sacks of cash. Clients were deliberately steered away from government officials and locals, deemed 'too risky.'
While much of the scam infrastructure was based in Dubai, Khaleej Times has also traced its offshore links to India's notorious call centre network, long associated with defrauding Western pensioners.
The scale of the fraud is staggering. One victim transferred Dh500,000 meant for his child's education. Another maxed out two credit cards and took out a personal loan. Many now face legal notices from banks.
The SCA's warning marks a significant regulatory acknowledgment of the threat these operations pose. On its website, the authority also cautioned the public against forged documents bearing its logo and fake approvals, urging residents to verify a company's status through the official SCA list of licensed entities.
