Dubai Brokerage Vanishes Overnight, Many Investors Including Indians Lose Millions: Report

The firm reportedly had roughly 40 employees who were engaged in persistent cold-calling campaigns, pitching foreign exchange trading opportunities to unsuspecting investors.

Victims often maxed out credit cards or took loans under the impression of entering a secure trading environment, only to realize the firms never had any legitimate presence.

Source : Freepik

A brokerage firm in Dubai has disappeared without a trace, leaving a trail of financial devastation for scores of investors, including many from India. Gulf First Commercial Brokers, which operated out of two offices in Capital Golden Tower in Dubai's Business Bay, abruptly shut down last month.

The firm had roughly 40 employees who were reportedly engaged in persistent cold-calling campaigns, pitching foreign exchange trading opportunities to unsuspecting investors, as per a report by The Khaleej Times.

Today, the once-bustling offices are deserted. What remains is a scene of sudden evacuation: dust-covered floors, disconnected phone lines, and a growing list of aggrieved investors.

“They (firm management) returned the keys, cleared everything out, and left like they were in a hurry,” said a security guard at the building. “Now we have people coming daily asking about them," stated NDTV citing the report.

Victims Detail Alleged Deception

Among those affected are Kerala-based brothers Mohammad and Fayaz Poyyl, who collectively put in $75,000. Mohammad described his visit to the office after the firm’s disappearance: “I came here looking for answers, but there's nothing, no one. Just empty offices. We called every number, but no one responded. It's like they never existed.”

Another Indian investor, Sanjiv, pointed out that Gulf First Commercial Brokers channelled clients toward Sigma-One Capital, an unregulated digital trading platform. He said investors were repeatedly assured of guaranteed returns, which persuaded many to commit their life savings. Mohammad, who alone had invested $50,000, noted that employees frequently alternated between the names Gulf First and Sigma-One, implying they were part of the same business.

Investors shared that their entire engagement with the company took place over the phone. “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,” Poyyl recalled.

Probe Uncovers Regulatory Violations

The disappearance has now prompted a formal complaint to the police against both Gulf First and Sigma-One. Investigators found that Sigma-One Capital operated without any licensing from the Dubai Financial Services Authority (DFSA) or the Securities and Commodities Authority (SCA). Though the firm claimed to have a Caribbean registration in St. Lucia and an office in Musalla Tower, Bur Dubai, no physical or legal presence was found at those locations.

This case bears a striking resemblance to earlier scams such as DuttFx and EVM Prime, where unregulated trading platforms lured residents through unsolicited cold calls and vanished after securing large sums of investor funds. Victims often maxed out credit cards or took loans under the impression of entering a secure trading environment, only to realize the firms never had any legitimate presence.