Man ordered to pay Dh1 million after defrauding woman in fake investment scheme

Abu Dhabi: The Abu Dhabi Court for Family, Civil, and Administrative Claims has upheld a ruling ordering a man to pay a woman Dh1,083,657, including Dh50,000 in compensation, in connection with a fraudulent investment scheme.

The case began when the woman filed a lawsuit against the man, demanding he repay the total amount. Her claim included Dh618,809 in interest stemming from a bank loan she had taken and transferred to his account, as well as Dh100,000 in compensation for damages suffered.

She also sought 12% late payment interest from the date the case was filed, in addition to court fees, legal expenses, and associated costs.

Misleading investment promises

According to the lawsuit, the defendant had convinced the plaintiff to invest in what he presented as a legitimate business opportunity. Although she initially stated she lacked the funds, he persuaded her to take out a bank loan, assuring her he would repay the principal and interest in full.

As a result, the woman obtained a loan of Dh698,000 and transferred the money to him in instalments. Additional amounts were also transferred, bringing the total to Dh1,083,657.

Evasion and deception

After receiving the funds, the man began stalling, claiming he needed more time and sending her photos of luxury watches. He later became unreachable, switched off his phone for a time, and eventually blocked her on social media.

These actions led the woman to realise she had been deceived, prompting her to pursue legal action.

Court rejects defendant's claims

The Court of First Instance ruled in favour of the plaintiff, ordering the defendant to repay the full amount along with Dh50,000 in compensation and to bear all case-related expenses and legal fees.

Dissatisfied with the verdict, the defendant filed an appeal. He claimed his business had suffered losses due to an accident that forced him to travel and argued that the business was still operational and required time to be liquidated.

However, the appeals court found that the defendant did not deny receiving the funds and had admitted to having a business relationship with the plaintiff. He also acknowledged receiving the money for investment purposes.

The court found no evidence of any actual commercial activity in the case file, indicating that no legitimate business existed.

Final verdict

In light of these findings, the court dismissed the appeal and upheld the initial ruling, confirming that the defendant must repay the plaintiff the full amount of Dh1,083,657.