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THE Financial Crimes and Money Laundering Prosecution head yesterday requested that four defendants, including a well-known businessman and three of his company’s top officials, must be awarded the maximum possible penalty after they allegedly embezzled more than BD6 million from investors.
The four Bahrainis – the company’s owner, chief executive officer and two board members – were present at the High Criminal Court.
It was originally stated that around 352 victims were allegedly defrauded by the individuals, but the latest figures by the Public Prosecution estimated that these funds belonged to more than 1,000 investors as part of 388 investment deals.
During the hearing, the head of the Financial Crimes and Money Laundering Prosecution delivered both an oral and written plea, stating that misconduct in the investment sector, the manipulation of its operational principles, and exploiting it for illicit gain can undermine the economic stability of Bahrain.
“Around 1,000 people are still holding on to the hope that they will get their money back,” he told the judges.
“Justice should prevail in this case, and they should all get their investments back.
“Each defendant played a role in reaching into people’s pockets and stealing their money.
“The first defendant had sought to free himself from debts arising from improper business practices by committing an integrated criminal scheme involving fraud, forgery, embezzlement and concealing the origin of the illicit funds obtained from those crimes.
“He created an investment entity through which investors’ money could be collected effortlessly.
“Thus, he established a company to engage in project financing using the contributions of those investors.
“The remaining defendants were aware of the first defendant’s actions yet nevertheless approved the deals.
“Therefore, we are asking them to be punished to the fullest extent of the law, to face the maximum penalty, and to return all the stolen funds.”
The prosecutor presented analytical charts to the court, showing the source and destination of the embezzled funds, which totalled BD6,831,707.673.
He concluded his plea by affirming that the case was replete with conclusive evidence proving that the defendants committed the acts attributed to them.
According to the details of the incident, the investment company is owned by the main suspect’s highly successful parent company.
An investigation was launched following a tip from the National Centre for Financial Investigations, which alleged that the suspects had tricked investors through bogus, falsified business deals.
The owner allegedly submitted dud cheques, withdrew funds from the company’s accounts with no apparent justification, and made payments that were not indicated in any written contracts.
He used the name of several Commercial Registrations as a pretence, falsely claiming that their owners needed funding to grow their ventures, then presented them as investment opportunities to his targets.
When the investors agreed to finance the businesses, he swindled the money they put in, using the funds to his own advantage, carrying out transactions to lend them legitimacy.
Investigations uncovered that the three other defendants knew of the scheme but did not alert investors, thereby enabling the owner to pocket the money.
A Central Bank of Bahrain audit stated that the defendant authored and signed the cheques, and addressed them to his name. He used the allegedly embezzled money to pay off debts and loans.
The case has been adjourned until next Monday, when the defendant’s lawyers are expected to give their statements.
nader@gdnmedia.bh
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