Three expatriates and a company are on trial for allegedly running a fraudulent investment and cryptocurrency scheme, and scamming 12 people out of more than BD444,000.
Only one suspect, a Moroccan cook, appeared at the High Criminal Court and denied allegations of money laundering, claiming that he himself was tricked into assisting in the scam.
He is standing trial alongside two Ukrainians, who have fled the country. They allegedly started a business to use its bank accounts to launder money and give legitimacy to their scheme.
The court heard that the Ukrainians, a 45-year-old woman and a 47-year-old man, ran advertisements on social media, offering lucrative investments in gold, petrol and digital currencies.
According to an officer at the National Centre for Financial Intelligence, the European duo tricked Bahraini citizens into forking over huge amounts of cash, promising high returns.
“The defendants started a company to use as a front to launder money. This company has no Central Bank of Bahrain licence to buy and trade in shares or digital currency,” the Interior Ministry official said.
“They convinced those who clicked on their adverts to invest with them, creating a digital wallet and updating the victims with supposed increases in the value of their investment.
“At first, they gave some small returns to the victims, but eventually took all the money to themselves.
“They did these things outside Bahrain to avoid legal consequences, and then laundered the stolen money using international wire transfers to countries like Spain, Poland and the UAE.”
The officer added that the Ukrainians recruited the Moroccan man to use his personal bank accounts to receive money from victims, and then relay it to them.
He allegedly handled a total of BD38,711 on their behalf, while his Ukrainian accomplices received BD444,291 from unsuspecting victims.
During the hearing, the 51-year-old cook claimed that he was tricked by an Arab man, residing in the UK, to help out with the illicit scheme, and had not known about the illegal nature of the activities.
“I was asked by a man to help him in transferring funds,” he told judges in his first hearing. “I did not launder money on purpose.”
According to Sijilat commercial registration (CR) records, the With Limited Liability (WLL) company was deactivated in November 2023 as the CR was not renewed, only two years after its establishment.
It was only licensed to practice two business activities – ‘publicity and advertising’ and ‘management consultancy’.
The 12 victims testified to the Public Prosecution about their ordeal, having handed over their life savings only to realise that the money has disappeared into thin air.
According to an allegedly-scammed Bahraini businessman, the individuals behind the scheme informed him that they were operating from Cyprus. A search of the defendant’s names do show business records registered in the woman’s name in Cyprus.
The court adjourned the trial to July 27 as the Ukrainians have been re-summoned to appear before judges, though that seems highly unlikely considering that they have left Bahrain.
zainab@gdnmedia.bh
&uuid=(email))