Man ordered to repay Dh446,000 after luring victim into fake online trading scheme

Abu Dhabi: An Abu Dhabi court has ordered a man to repay Dh396,058 and to pay an additional Dh50,000 in damages after finding that he misled another individual into investing in a fraudulent online trading platform that promised secure returns.

The Abu Dhabi Family, Civil and Administrative Claims Court handed down the judgement in favour of the plaintiff, who alleged that the defendant had induced him to transfer large sums of money in instalments under the pretext that the funds would be invested for profit on a legitimate trading platform.

Instead, evidence presented in court showed that the platform in question had no official registration and was part of a deliberate deception.

In his civil claim, according to Al Khaleej newspaper, the plaintiff asked the court to compel the defendant to return the Dh396,058 that had been lost and to award him Dh100,000 in compensation for material, emotional and moral damages. The plaintiff also sought legal costs and attorney’s fees.

The dispute followed earlier criminal proceedings, in which the defendant was found to have gained control of the plaintiff’s funds through fraudulent means. 

Prosecutors established that the defendant had falsely represented the platform as a safe investment. He had enabled the plaintiff to open an account and even to withdraw a small amount of purported profit, a tactic that helped convince the victim to transfer additional funds.

The court noted that this pattern of behaviour, including the initial, misleading demonstration of returns, had led the plaintiff to trust the scheme and hand over significant sums of money. 

Judges found that the defendant’s conduct inflicted both material harm, by depriving the plaintiff of his funds, and emotional distress, characterised by regret and anguish once the fraud was revealed.

After examining the evidence, the court set comprehensive compensation at Dh50,000 for the plaintiff’s demonstrated losses beyond the principal sum. Combined with the required reimbursement of the principal amount taken, the total financial burden on the defendant will exceed Dh446,000, excluding legal costs.