Dubai developer Union Properties says $42M ‘misappropriated’

DUBAI, United Arab Emirates (AP) — A troubled Dubai real estate developer said Monday it suspected that $42 million had been “misappropriated” by the company’s former officials while declaring it massively overvalued its holdings.

The announcement 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.

Last year “has been a difficult year for Union Properties as we uncovered widespread fraud and misconduct by the company’s former management involving forgery, misappropriation of funds and various other financial violations which has negatively impact the company’s financial health and been a severe breach of shareholder confidence,” managing director Amer Khansaheb said in a statement.