Three suspects in $50m Saudi fraud case

SPOTLIGHT: Three Arab men are under investigation with regards an alleged $50m fraud.

Three Arab men are under investigation for allegedly swindling 500 prospective investors out of more than $50m.

Sources told the Saudi Gazette that the three suspects led clients to believe that a company was conducting significant trade deals “to import new medicines from European companies through speculative contracts.”

The three would then sign deals in the company’s name with company stamps and signatures, promising profits of up to 200 percent on investments over a five-year period ending at the beginning of 2012.

Investigations revealed that the three had transferred their earnings from the company bank accounts to their own personal accounts by exploiting their connections with a board member, in order to prevent the investors reacquiring their money. The wife of one of the three is related to a member of the company’s board of directors.

According to the Kingdom’s laws, the accused trio each face up to two years in prison and fines of up to one million Saudi riyals ($266,650). The paper added that if it was found the company had provided cover for the trio, the company could have its commercial register and license removed and be prevented from pursuing commercial activities for up to five years.

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