Cairo: A Bahraini criminal court is trying a citizen charged with illegally collecting and laundering nearly BD1.5 million after duping people into believing he would invest their money and offer them high interest rates in return, local media reported.
Assisted by an accomplice of an Arab nationality, the 37-year-old defendant had claimed he owned firms for trade and technological consultancy services, and managing portfolios that offered profits of up to 50 per cent. He swindled the money out of 23 persons over the years from 2017 to 2021.
In an attempt to gain customers’ confidence, he occasionally returned portions of the money to them, alleging they were profits on their deposits.
He also signed an employment contract between a company based in Bahrain and another owned by the second defendant abroad to serve as a cover-up for the transfers and money laundering without raising suspicions.
After arrest, the prime defendant admitted to having amassed the money without a licence.
Investigations showed that most of the fraudulent practices had been carried out by the defendant in his house where a large collection of documents on the fake business were seized. He is charged with fraud and money laundering.