Dubai court orders two men to repay woman Dh 14,000 after online investment scam

Dubai: The Dubai Court of First Instance has ordered two Asian men to repay a woman Dh 14,180 after she mistakenly transferred the funds to their accounts, believing she was investing in a legitimate trading opportunity.

The court applied the legal principle of “unjust enrichment,” citing the defendants' failure to return funds they had no lawful claim to.

The plaintiff, an Asian woman, had been contacted by an unknown individual via social media who offered her a chance to invest in high-return trading activities.

Enticed by the promised profits, she agreed and transferred Dh 12,180 to one defendant and Dh 2,000 to the other. When the promised returns failed to materialize and the individual vanished, she attempted to recover the money amicably but was unsuccessful. She subsequently filed a complaint with police.

The two men were previously convicted in criminal court for possessing funds under suspicious circumstances. The misdemeanor court fined each Dh 2,000 and ordered them to repay the amounts received. The woman then pursued a separate civil claim seeking repayment of the full amount plus 12 per cent interest.

Evidence presented to the court included bank transfer receipts and police investigations confirming the funds had been sent to the defendants' accounts.

While the men did not appear before the civil court, the judge ruled in favor of the plaintiff, stating the defendants had been unjustly enriched.

According to Article 318 of the UAE Civil Transactions Law, no one may take another’s money without a legitimate reason, and if they do, they must return it. The court confirmed the three elements of unjust enrichment were satisfied: the defendants had gained financially, the plaintiff had suffered a corresponding loss, and there was no legal justification for the enrichment.

The court rejected any claim that the defendants participated in the original fraud scheme, noting there was no evidence of their direct involvement in the deception. Therefore, while they were not liable for damages related to fraud, they were still required to return the money.

The court ruled the first defendant must repay Dh 12,180, and the second Dh 2,000, along with 5 per cent interest calculated from the date the lawsuit was filed.