It is not clear how many investors are affected, but some accounts suggest the number could exceed 3,000, with more than £200 million at stake
Hopes are dimming for UAE-based investors in a UK asset management firm facing a police probe for suspected fraud after it vacated its Dubai office, shut down its website, and became unable to renew its licence for failing to meet compliance requirements.
The Dubai Multi Commodities Centre (DMCC), where the company was licensed, confirmed in a statement to Khaleej Times, “The company in question has not met DMCC’s clear compliance requirements and as such, would currently not be able to renew their license. DMCC also understands that the company has vacated its office in the DMCC district.”
The Seventy Ninth Group, which opened its Dubai office in 2023, is being investigated by the City of London Police on suspicion of fraud and has been placed into administration in the UK.
The company sold structured loan notes secured against UK properties, promising investors annual returns of 15 to 18 per cent. It claimed investor funds were used to buy distressed properties, refurbish them, and sell them for profit to generate payouts.
The firm has denied any wrongdoing, saying it is cooperating with investigators and working with forensic accountants on a business review. A representative of the 79th Group told Khaleej Times, “There are currently ongoing court proceedings in the UK so we cannot say much, but we are looking to renew the licences as soon as we can.”
The group suspended payouts earlier this year, citing a moratorium while it sought to restructure. It is not clear how many investors are affected, but some accounts suggest the number could exceed 3,000, with more than £200 million at stake. Assets including a former hospital in Northumberland and offices in Warrington have been put up for sale.
Several UAE-based investors told Khaleej Times they have been left in the dark about their funds. An Abu Dhabi resident who invested Dh200,000 said, “We received an email months ago saying payments were being paused, but since then there has been no clarity or explanation.”
A former British expatriate in Dubai who invested Dh360,000 said he initially received three payouts before they stopped. “I even considered reinvesting in February, but then the raid happened. Since then there has been no clear response from the company,” he said.
Uncertain recovery
The City of London Police arrested four individuals in Merseyside earlier this year as part of the probe and later released them on bail. The force has urged investors to file reports through its Major Incident Public Portal.
Financial experts say only some investors may qualify for UK compensation schemes, depending on when and how they paid in. Lawyers warn claims must be filed quickly, as the six-year limitation clock under UK law is already ticking.
A Dubai-based health professional who invested Dh800,000 said he is part of a group of investors from around the world. “There’s a lot of activity happening, and efforts are on by some UK-based investors to escalate the case with the highest authority. As for me, I am just a mute spectator because there is nothing much that we can do but hope.”
UK Finance has directed banks to freeze reimbursement claims under fraud compensation schemes until the police investigation is complete, leaving victims in further limbo.
Meanwhile, Insolvency & Law, a UK-based consultancy providing debt and insolvency solutions, said it had raised the alarm about the 79th Group in 2023.
“We warned investors that beneath the slick branding and high-return promises was a structure built to delay, deflect, and deny accountability. Now, the mask has slipped. With investor payments frozen, police arrest underway, and administrators being appointed without lender consultation, it’s clear: this is no longer a matter of poor performance — it’s a full-blown collapse.”
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