Dubai developer Union Properties says $42M ‘misappropriated’

By JON GAMBRELL
Associated Press

DUBAI, United Arab Emirates (AP) — A troubled Dubai real estate developer says it suspected $42 million had been “misappropriated” by the company’s former officials while declaring it massively overvalued its holdings. The announcement on Monday by Union Properties comes as Emirati prosecutors announced in October they were investigating the firm. Already, the firm’s board of directors has seen its chairmen and other officials dismissed amid the probe. A statement from the company’s managing director said auditors had “uncovered widespread fraud and misconduct by the company’s former management involving forgery, misappropriation of funds and various other financial violations.” It says it has nearly $800 million in accumulated losses in recent years.