Bahrain court convicts investment company owner in major money laundering case

TDT | Manama

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A Bahraini court has convicted the owner of an investment company, along with several others, on charges including money laundering, fraud and document forgery.

The court ordered lengthy prison sentences, imposed fines, and ruled for the confiscation of illicit proceeds, the Public Prosecution said.

According to a statement by the head of the Financial Crimes and Money Laundering Prosecution, the First High Criminal Court sentenced the company owner and its chief executive to eight years in prison and fined him BD500,000.

Assets

The court also ordered him to repay more than BD6.38 million and confiscated assets linked to the crimes.

Two board members were sentenced to five years in prison and fined BD50,000 each, while another defendant received a one-year prison sentence and a BD5,000 fine.

Forged documents were also confiscated.

The case dates back to a financial intelligence report received by Bahrain’s National Center for Financial Investigations, which uncovered suspicious transactions involving the company.

Deals

Investigators found that the company owner used fictitious deals, forged documents and unauthorized cash withdrawals to defraud investors and misappropriate funds.

Authorities said the investigation revealed that investors’ money was obtained through fake commercial transactions and financing requests that did not reflect actual business activity, enabling the defendants to unlawfully seize funds valued at more than BD6 million.

Prosecutors said the chief executive and two board members were complicit in some of the crimes by abusing their positions to facilitate the illegal scheme, including the laundering of the proceeds.

Investigations

The Public Prosecution stated that investigations were launched immediately upon receiving the report, with measures including tracking financial transactions, freezing assets, preventing the defendants from travel, and appointing experts to analyze the seized accounts and funds.

The case was referred to the competent court, which issued its ruling after reviewing audit reports, financial analysis findings and witness testimony.