UAE: 40-member gang jailed, fined Dh860 million for money laundering

Photo: Wam

Abu Dhabi - The gang told the victims that their investments were converted into digital currencies called ‘Foin’.

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by

Ismail Sebugwaawo

Published: Wed 18 Aug 2021, 2:14 AM

A 40-member gang has been sentenced to between five and 10 years in jail for money laundering activities and defrauding others through stock markets.

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The defendants of various nationalities were also jointly fined Dh860 million. Eight companies that were involved in the illegal activities were fined Dh50 million each.

The gang told the victims that their investments were converted into digital currencies which they called ‘Foin’. The victims later realised that this was a bogus investment as they couldn’t access their capital.

The Abu Dhabi Criminal Court, which is committed to looking into money laundering and tax evasion crimes, sentenced 23 of the main defendants in the case to 10 years in prison and a fine of Dh10 million each.

Eleven of the defendants were given seven years in jail each and fined Dh10 million after they were found guilty of money laundering and financial fraud.

A five-year-jail sentence was given to one of the defendants and he was fined Dh10 million. Five others were sentenced to six months in prison and fined Dh20,000 for obtaining cash illegally.

Court documents stated that security agents were tipped off about the gang that had 17 Emiratis, 16 Iranians, two Indians, a Saudi, a Mauritanian, an American, a Greek and a Comoros Island national.

Prosecutors said the group engaged in financial fraud, money laundering and carried out economic activities without licences.

Investigations revealed that the gang lured scores of people into investing in their portfolio, which was purportedly trading in stock markets.

Authorities said the gang received money from investors and shareholders after promising them 16-18 per cent profit.

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They also told the victims that they would help trade their shares. This was done through companies and individuals based in the UAE.

The victims complained to the authorities and the Abu Dhabi Public Prosecution on financial issues investigated the case.

ismail@khaleejtimes.com

Ismail Sebugwaawo

Published: Wed 18 Aug 2021, 2:14 AM

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