A Dubai civil court has ordered a man previously convicted of fraud in another Arab country to return more than Dh10 million to a fellow national, after ruling that he deceived the victim into investing in a fake business venture.
The court also granted Dh500,000 in compensation for financial and moral damages, concluding that the defendant intentionally misrepresented a non-existent company, collected millions of dollars, and later fled his home country.
Court documents revealed that the defendant convinced the claimant to invest in what he claimed was a securities trading company in an Arab state, promising lucrative returns. Relying on these assurances, the victim transferred $2.7 million through multiple bank transactions, believing the venture was legitimate.
Investigations later confirmed that the company was neither licensed nor registered with the relevant financial authorities and had no legal status. Judges found that the entity was merely a front used to defraud investors and unlawfully seize their funds.
The court noted that the defendant had already been convicted in absentia in his home country, where he received a 15-year prison sentence and a fine for defrauding the claimant and others. He fled before serving the sentence or returning the stolen money.
During the Dubai proceedings, the defendant argued that the local courts had no jurisdiction, that submitted documents were uncertified, and that the case had exceeded the statute of limitations. The court rejected all claims, ruling that the foreign judgment was properly authenticated and legally valid.
Judges further stated that since the fictitious company had no legal existence, the defendant collected the funds in his personal capacity. As he was residing in the UAE, Dubai courts were competent to hear the case.
In determining damages, the court ruled that the victim suffered not only financial loss but also lost opportunities, emotional distress, and prolonged anxiety. The defendant was ordered to repay the full amount, pay Dh500,000 in damages, plus 5% annual legal interest until settlement, and shoulder all court-related costs.
