BC woman scammed out of $1 million by promising investment in fictitious Dubai project

B.C. woman loses $600,000 in ‘fraud scheme’ involving fictitious Dubai project

A woman who gave a large portion of her life savings to a couple to invest in a construction project in Dubai that never existed has been awarded nearly $1 million in damages, according to a recent court ruling.

The ruling was handed down by Judge Richard Fowler earlier this year and was published online Wednesday.

Manjit Kaur Sandhu sued Mira and Kuldeep Virk, alleging that the couple defrauded her of $600,000 by promising her a 10 percent annual return on an investment in a fictitious Dubai project.

“Ms. Sandhu has clearly been deeply traumatized by the extent of the Virks’ deception. I am sure she feels humiliated that she allowed the Virks to deceive her and essentially steal $600,000 from her,” the judge wrote. The Virks, especially Meera, exploited Ms. Sandhu’s trust by feigning religiousness and spirituality.”

Several other defendants who were alleged to have played a role in the scheme also reached plea agreements with Sandhu before the trial began.

The trial continued without the Virks, as the judge determined they had had ample opportunity to defend themselves but had “virtually abandoned the process.”

Details of the case in court

Sandhu said he met the couple through his brother-in-law, who was a friend of Meera’s. His first payment was made in February 2016.

In a phone call to Sandhu, Meera, emphasizing her commitment to her Sikh faith, convinced him to invest $200,000 in a construction project that was “soon to be completed,” and promised to secure the investment with a second mortgage on a property.

A week later, Meera called again, saying the project was nearing completion but she needed more money. Sandhu paid another $200,000.

“Mira was very well-groomed, drove well, and was well-dressed,” the judge wrote. “Even more reassuring were her oaths on the Sikh scripture, the Guru Granth Sahib, that all of Sandhu’s money would be safe.”

A promissory note was given to Sandhu for four months at 10 percent interest.

Three months later, Mira again said the project was nearing completion but still short of funds. Sandhu paid another $100,000 and received two more promissory notes.

Over the next few months, despite Sandhu’s growing concerns, Mira continued to reassure him with promises of repayment. Eventually, Mira stopped returning his calls.

Nine months after the last $100,000 payment, in May 2017, Mira came to Sandhu’s home and reassured him that his money was safe.

Two years later, Sandhu filed a civil lawsuit. He had not received any of the principal or the promised interest.

Sandow said the loss left him “in pain and depression,” disrupted his sleep, and worried he would lose his money. He was forced to sell his house and buy a smaller one.

Sandow, a religious man, was particularly hurt by Mira’s abuse of his faith to gain his trust.

The verdict

Judge Fowler found the Wirks guilty of breach of contract and civil fraud and awarded them $600,000 in damages, plus 10 percent annual interest.

The total amount was $1,141,397.26, but was reduced to $811,397.26 after deducting $330,000 from the settlement with the other defendants.

In addition, the judge awarded Sandow $75,000 in moral damages (humiliation, distress, and loss of self-esteem) and $90,000 in punitive damages to deter similar conduct.

In total, Sandow received $976,397.26 in compensatory damages and $20,000 in legal fees.

The judge emphasized that the Wirks skillfully exploited Sandow's vulnerability and that no criminal charges were filed against them despite a report to the police.

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