MMA Forex’s offices shut by Dubai Police based on fraud allegations.

LeapRate has learned that Dubai based Forex broker MMA Forex, run by Pakistani businessman Malik Noureed Awan, has been shut down by Dubai police after several hundred MMA clients were unable to withdraw money from their accounts. MMA claims to be doing about $20 billion of forex volume per month, with over 100,000 registered customers worldwide, and to be backed by a major (but unnamed) financial institution with over $17 billion in assets under management and rated A+ by an S&P affiliate.

Gulf News reports that on Saturday several dozen clients of MMA Forex showed up at the company’s offices at the Mai Tower in Dubai demanding that the company return their money, only to discover a sign that read “under renovation” posted on the door. Gulf News reports that clients of MMA’s investor-managed account stopped being paid profits dating back to October 2012. These clients were told they could not be paid for two months. The two months extended to ten.

Finally, Gulf News reports that MMA CEO Malik Noureed Awan, a Pakistani businessman in his late 20s, is currently being detained at Dubai’s Al Qusais Police Station, under investigation for complaints filed against him by MMA Forex investors.

Awan is a colorful Pakistani businessman. Beyond MMA, he recently floated plans to launch a new airline in the UAE.

We’ll bring you more on this story as it unfolds.

For more on the global Forex industry see the LeapRate-Dow Jones Forex Industry Report.