Man in UAE loses nearly Dh400,000 in fake investment scheme

Abu Dhabi: A man has been ordered to repay Dh396,058 to another man after finding that he had fraudulently obtained the money by persuading him to invest in a fake trading scheme operated through an unlicensed company.

The court also awarded the victim Dh50,000 in compensation for material and moral damages.

The ruling was issued by the Abu Dhabi Family, Civil and Administrative Cases Court, which held the defendant financially liable for both the misappropriated funds and the harm caused by the deception.

According to Emarat Al Youm, the claimant, a young man, brought a civil case seeking the return of Dh396,058, which he said the defendant had taken after convincing him to invest in what was presented as a safe and profitable trading platform.

The claimant also sought Dh100,000 in damages, citing financial loss, emotional distress and related harm, as well as court fees and legal costs.

The claimant told the court that he transferred the funds in several installments after being assured that the investment opportunity was legitimate. It later emerged that the company involved was not licensed, and that he had fallen victim to fraud.

Criminal proceedings were subsequently initiated, resulting in the defendant’s conviction. The defendant, in turn, submitted a written defence requesting the dismissal of the civil claim and provided documents that were reviewed by the court.

In its reasoning, the court noted that the defendant had already been convicted in the criminal case, where he was initially fined Dh500,000 at the Court of First Instance.

The fine was later reduced to Dh300,000 on appeal, a ruling that was upheld by the Court of Cassation. The court said the offence established in the criminal case formed the same factual and legal basis for the civil claim.

Addressing the request for restitution, the court cited provisions of the UAE Civil Transactions Law, which require anyone who unlawfully takes another person’s property to return it in full. 

Given the criminal conviction, the court ruled that the defendant was obligated to refund the entire amount taken from the claimant.

On compensation, the court found that the defendant’s actions caused both material damage, including loss of capital and missed financial opportunity, and moral harm, such as distress, regret and emotional suffering.

It, therefore, ordered the defendant to pay Dh50,000 in comprehensive compensation, in addition to returning the misappropriated funds.

The defendant was also ordered to cover court fees, expenses and legal costs.