“10% Monthly Profit” Promise Leads to BD382,000 Fraud Case

According to the Public Prosecution, the defendant convinced the victims to invest their money through an online investment platform he claimed to own and manage. He allegedly collected the funds for investment and management purposes without obtaining a license from the Central Bank of Bahrain or any other competent authority.

Investigations revealed that the defendant used deceptive methods to gain access to the victims’ funds by interfering with information technology systems linked to the platform. He introduced himself as an experienced investor and met the victims personally, explaining the investment process and creating accounts and passwords for them on the platform. He then asked them to transfer funds through financial applications to bank accounts belonging to other individuals, claiming the money would be deposited into the investment platform. Contracts were also signed, promising the return of the funds in case of losses.

Authorities found that the defendant initially deposited small, purported profits into the victims’ accounts to build trust. However, withdrawals later stopped, the platform became inaccessible, and communication with the defendant ceased. Victims later discovered that the bank accounts used in the transfers belonged to members of the defendant’s family and that the profits shown on the platform were fictitious.

When one of the victims contacted the platform’s technical support to verify its legitimacy, it was revealed that the platform contained no real funds, confirming that the operation was fraudulent.

Investigations conducted by a police officer established that the defendant was the ultimate beneficiary of the collected funds through a platform he fully controlled, which had no physical presence in the Kingdom of Bahrain. The defendant’s sister had allowed the use of her bank accounts after he misled her into believing the funds were linked to a legitimate investment project, leading authorities to freeze those accounts.

Further findings showed that the defendant personally recruited victims and, in some cases, used another individual who acted in good faith to attract investors. Funds were transferred to accounts belonging to his relatives or handed over in cash, after which the defendant would pay small returns to maintain credibility before ultimately stopping withdrawals and seizing the money.

Investigators also found that in 2023 the defendant attempted to repair relations with his family following a long-standing dispute, apparently to regain their trust and involve them in handling funds related to the investment platform he claimed to operate.

Financial records indicated that the defendant’s sister received transfers from several individuals she did not know, withdrew amounts ranging between BD5,000 and BD30,000, and handed them over to her brother based on his instructions, without any legal role in those transactions.

A review of the defendant’s criminal record further revealed prior convictions related to fraud and forgery.