HENG SHENG GROUP ENGAGES IN A FRAUDULENT TRANSFER TO EVADE A $400,000 JUDGMENT CREDITOR AND DUBAI IS COMPLICIT

If you saw the recent report, appearing on LINKEDIN, detailing the $400,000 default judgment awarded in court against the HENG SHENG GROUP (HS) in Dubai, you know that the Chinese-owned Citizenship by Investment (CBI) company curiously did not defend the lawsuit, although it has a significant corporate presence in the UAE. HS then shut down its operations there, and immediately afterwards reopened under another name. That is against the law in most countries, and can even constitute a crime.

To the non-lawyers out there, such an action constitutes a fraudulent conveyance to avoid a judgment creditor, and in most jurisdictions, it can be set aside by the courts, which can even go further and, in what is known as Piercing the Corporate Veil, reach the successor company's assets, even if they only hold customer lists, goodwill, or other valuable assets. This is the commission of a fraud upon the court, as well as the creditor.

We ask, why did the authorities in "business friendly" Dubai tolerate this fraud? The benign neglect of rogue CBI passport-selling companies is apparently how DUBAI authorities govern; we know it completely ignored the illegal discounting of passport sales prices for years, and wonder whether bribes were paid to insure that Heng Sheng's fraudulent transfer would go unpunished. 

Remember, HS is also known to have returned to the illegal discounting of passport prices in Grenada, notwithstanding that Grenada signed an international agreement to cease and desist in that illicit practice; Heng Sheng has zero respect for this, or any law. 

The case illustrates that even the largest players in the investment migration industry have nothing but contempt for the Rule of Law, and investors who believe they can bring a civil suit if things so south with their own CBI purchase should govern themselves accordingly.