Investor loses life savings to online trading scam

Abu Dhabi: An investor has lost his savings to an online trading scam, believing he was dealing with a legitimate broker. Last week, an Abu Dhabi court ordered the man behind the deception to return $100,000 and pay additional compensation, bringing a measure of justice to a case that highlights the growing risks of online financial fraud.

The Abu Dhabi Family, Civil and Administrative Claims Court ruled that the defendant must repay the full amount he had taken from the investor after luring him through a social media advertisement that falsely claimed affiliation with a recognised trading platform.

The court also ordered the defendant to pay Dh50,000 in damages for the financial and emotional harm caused, Emarat Al Youm reported.

According to court records, the investor transferred his money after being assured that it would be invested on his behalf and generate profits.

Instead, the funds were diverted to the defendant’s personal bank account, and it later emerged that the trading opportunity was fictitious.

The victim subsequently filed a civil claim seeking more than Dh605,000 (around $165,000), including the return of his money, compensation for losses and missed profits, and interest. He also submitted copies of criminal court judgments, which had already found the defendant guilty of fraud using information technology.

In its reasoning, the court said the criminal conviction had conclusively established the facts of the case, including the use of deception and a false professional identity to obtain the investor’s money. As a result, the civil court found the defendant fully liable for the financial loss.

Citing the UAE Civil Transactions Law, the court noted that anyone who unlawfully takes another person’s property is obligated to return it in full. Based on the evidence, judges ordered the repayment of $100,000, or its equivalent in UAE dirhams.

However, the court rejected a separate claim for an additional $65,000, saying there was no legal proof linking that amount to the defendant or to the fraudulent scheme.

On the issue of compensation, the court said the defendant’s actions had caused tangible harm, including lost earnings as well as emotional distress, frustration and regret. It ruled that Dh50,000 constituted fair and comprehensive compensation under the circumstances.

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