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All six in DIB bogus share case acquitted

DUBAI — The Dubai Court of Cassation yesterday acquitted all six accused in the Dubai Islamic Bank bogus share case, bringing to a close two years of court battle.

The court rejected the allegations of the Public Prosecution, the Securities and Commodities Authority, and the Dubai Financial Market against the six, identified only as Z. R. O, Y. A, J. A, K. A. M, M. J. A, and B. K. M.

The case dates back to August 28, 2005. The Public Prosecution charged the six persons with trading in bogus shares worth Dh7 billion out of the Dh9.3 billion worth of total trading on that day and providing misleading data. The Dubai Court of First Instance had sentenced each of the defendants to three years in jail, along with Dh1 million fine and deportation for four expatriate accused.

They were also ordered to pay a temporary compensation of Dh1 million to both the Securities and Commodities Authority and the Dubai Financial Market.

The case was taken to the Dubai Court of Appeal, where it was adjourned 12 times over a year-and-a-half in anticipation of the report of the accounts experts, which later cleared the accused of trading in any bogus shares.

Defence lawyers Samir Jaafar, Ali Al Shamsi, Dr Mohammed Abdullah Al Rokn and Abbas Al Maliki insisted on their clients’ innocence, highlighting that the petitions should be declared null and void as the report by the committee of accounts experts proved that all transactions claimed bogus were legally approved and in order.

The Dubai Court of Appeal had acquitted all of them but ordered Y. A., to pay a fine of Dh20,000 for working as a broker without licence.

Technical aspects

Dissatisfied, the Public Prosecution, along with the Securities and Commodities Authority and the Dubai Financial Market challenged the verdict in the Dubai Court of Cassation, contending that the experts’ report was not inclusive. They claimed the court missed some technical aspects.

In their pleas, the defence lawyers put emphasis on the report of the bourse and securities market committee appointed by the court to examine the trading on August 27 and 28, which later proved to be valid.

All deals of August 28 were similar to those of August 27. They were all done under the supervision of the Securities Market Administration that had given approval for the increase in the credit twice — to Dh 250 million and Dh 200 million, the defence lawyers argued.

Trading on the two days was done under the electronic system adopted by the stock market, which made it impossible for the identity of the brokers to be determined, they added.

The value of the DIB share had already increased on August 10, 2005, and remained balanced even after the trading was suspended on August 28. The volume of the said trading was less than that determined by the Dubai Stock Market, they maintained.

The defendants, as per the report, did not try to fix the price of the DIB shares. Moreover, none of the brokers or Dubai Stock Market was harmed, the defence lawyers told the court.