BD 6 Million Investor Scam: Company Owner and Executives Face Criminal Trial

The Head of the Financial and Money Laundering Crimes Prosecution announced that the Public Prosecution has ordered the referral of the owner of an investment company, along with two board members and the company’s CEO, to criminal trial. They are accused of committing fraud, forgery, embezzlement of over BD 6 million from investors’ funds, and laundering the proceeds of these crimes.

The prosecution stated that its investigations followed a report from the National Financial Investigations Center at the Ministry of Interior regarding the company owner’s fraudulent activities targeting investors and misappropriating their funds through document forgery and subsequent money laundering.

Investigations revealed that the company’s CEO and two board members were complicit in some of these crimes, assisting in procedures within their authority that enabled the owner to embezzle funds from several investors through fictitious transactions.

The National Financial Investigations Center had initially received a financial report highlighting suspicious activities by the company owner, including issuing fake checks, unauthorized withdrawals and deposits, and payments not documented in contracts. The center’s investigation concluded that these actions allowed the owner to wrongfully acquire investors’ money.

Subsequent prosecution investigations confirmed that the main accused, as the company owner, exploited his authority to defraud investors by presenting fake deals. He used commercial records, falsely claiming that their owners had requested financial funding, and then offered these deals to investors for approval, ultimately embezzling over BD 6 million.

The investigations also revealed that the CEO and two board members facilitated two transactions without disclosing their true nature to investors, enabling the owner to seize investors’ funds in these deals.