BD6mln investment fraud trial begins

TDT | Manama

Email: mail@newsofbahrain.com

The First High Criminal Court yesterday opened the trial of the owner of a financial investment company, along with the company’s CEO and two board members, accused of fraud, forgery, and embezzling over BD6 million from investors’ funds, in addition to laundering the proceeds of these crimes.

The four defendants, who were previously released on bail, appeared in court and denied all charges. Three lawyers announced their representation of 352 civil claimants, including lawyer Fadhel Al-Omari on behalf of 350 plaintiffs, and lawyers Sarah Atiq and another attorney representing two additional claimants.

Commitment

The Public Prosecutor, who attended the session, emphasized that the charges outlined in the referral order reflect the Public Prosecution’s firm commitment to combating crimes that threaten the national economy and the investment sector— one of Bahrain’s key economic pillars.

He affirmed that the prosecution exercises its full legal authority to address money laundering, embezzlement, and fraud in the private sector due to their harmful impact on society.

He noted that the case involves several interconnected crimes carried out as part of a well-organized criminal scheme, with each defendant playing a defined role for personal gain.

Pleadings

The prosecution will elaborate on its arguments in future pleadings, supported by what it described as conclusive testimonial and material evidence.

It confirmed reliance on the referral order and applicable laws to seek the maximum penalties.

Defense lawyers requested copies of the case files and additional time to review the documents.

Two attorneys also filed a motion seeking a media gag order, citing concerns about public influence on the proceedings.

Hearing

The court adjourned the hearing until October 20 for the defense to present its arguments.

Earlier, the Head of the Financial Crimes and Money Laundering Prosecution stated that investigations began following a report from the National Financial Intelligence Center at the Ministry of Interior.

The report alleged that the company owner had defrauded investors, embezzled their funds using forged documents, and laundered the illicit proceeds.

Actions

Investigations revealed that the CEO and two board members facilitated the owner’s actions within their areas of responsibility, enabling the embezzlement of investor funds through fictitious transactions.

According to the report, the company owner engaged in suspicious financial activities, including issuing fake checks, making unjustified withdrawals and deposits, and recording unexplained payments not backed by contracts.

The findings indicated that he unlawfully appropriated investors’ funds, prompting the Public Prosecution to initiate a comprehensive probe.

Fictitious deals

The investigation determined that the main defendant exploited his authority to defraud investors by promoting fictitious business deals using forged commercial records.

He falsely claimed that certain entities had applied for financial funding.