DLA Piper secures successful outcome for First Fund Management in ADGM fraud proceedings

DLA Piper secured a significant victory in the Abu Dhabi Global Market (ADGM) Courts for clients, First Fund Management Limited and former Union Properties PJSC Chief Financial Officer, Paresh Khiara, in complex fraud proceedings brought by Union Properties PJSC, one of the UAE's major property developers, and its subsidiary, UPP Capital LLC.

The claim, valued at over AED 320 million, was brought against 13 defendants and concerned an alleged fraudulent investment scheme involving participatory notes (P-Notes) and commenced in November 2022.

The claimants alleged that UPP Capital had purchased units of P-Notes, purportedly backed by diversified holdings, which in fact consisted almost exclusively of shares in Union Properties. It was further alleged that these P-Notes were subsequently distributed to former members of Union Properties' management through a concealment scheme involving asset management companies to conceal their true destination, before being redeemed for cash.

First Fund Management Limited and Mr Khiara were accused of playing central roles in the concealment scheme. The claims against them included allegations of deceit, negligent misrepresentation, dishonest assistance, unlawful means conspiracy, and breaches of the Financial Services Market Regulation in the ADGM.

In its judgement dated 6 March 2026, the Court found that there was no evidence either First Fund Management Limited or Mr Khiara had engaged in any wrongdoing. The Court was critical of the claimants' case, noting that certain allegations had not been properly pleaded and that the evidence did not support the claims advanced. This represents a major win not only for DLA Piper, but for its clients, who have been cleared of wrongdoing after living with significant, detrimental allegations for more than three and a half years.

This follows DLA Piper's success in July 2025, when in the same case, it succeeded in having claims against former Union Properties non-executive Director Dahi Almansoori struck out.

The DLA Piper team was led by partner Andrew Mackenzie, supported by legal director Andrew Massey and associate Ross Wilson.

Andrew Mackenzie, partner, commented: “This is a significant result for our clients in a complex, high-value fraud case. The judgment reinforces the need for properly pleaded allegations and clear, cogent evidence when advancing serious claims of wrongdoing.”