Ponzi scheme pair: Father and son accused of defrauding USD 27 million in the UAE

Ponzi scheme pair: Father and son accused of defrauding USD 27 million in the UAE
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Published August 5th, 2013 - 06:47 GMT via SyndiGate.info

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The suspects had lured 400 individuals into investing in a non-existent project which they alleged will generate ⠀˜high returns’.
The suspects had lured 400 individuals into investing in a non-existent project which they alleged will generate ⠀˜high returns’.
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Cassation court
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Court of Appeals
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Court of Cassation
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Criminal Court

A father and son have been convicted of defrauding Dh100 million (around 27 million USD) in fake investments using the name of their deceased business partner, the Cassation court ruled.                                                                                       

The defendants have been sentenced to one year in jail in addition to paying Dh40,000( (11,000 USD) for conducting financial business without a licence. The pair was initially sentenced to four years after being found guilty by the Criminal Court and were later declared innocent by the Court of Appeals. However, after reopening the case, the Court of Cassation reduced their prison sentences to one year.

The suspects had lured 400 individuals into investing in a non-existent project which they alleged will generate €˜high return. They completed their act by placing false advertisements about their unlicensed company in different media outlets.

According to court records, the pair was instead using the cash they received from investors to purchase stocks through which they lost Dh14 million. It is learnt the deceased was also unaware of what both men were doing as he was not too involved in the company’s business details. Despite that, the suspects continued to falsely use his name 15 months after he died, and wrote 95 per cent of the company’s shares in his name.

Based on this information, the men were found guilty even after they were cleared of the charges against them.

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