Abu Dhabi court fines four people, jewellery firm Dhs90m for money laundering, fraud

A jewellery company in Abu Dhabi has been slapped with a Dhs50m fine on charges of “committing money laundering and fraud against 4,000 people”, official news agency WAM reported.

The Anti-Money Laundering and Tax Evasion court within the Abu Dhabi Judicial Department (ADJD) also convicted four people, all Filipinos, on the charge.

Each of the four defendants has been handed a five-year imprisonment term followed by deportation and a fine of Dhs10m.

Abu Dhabi Court Convicts 4 Filipinos and a Jewellery Company for Money Laundering and Fraud on 4,000 People
The judgment includes a fine of 90 million dirhams and the confiscation of 7,370 grams of gold. pic.twitter.com/vd96d7HLTB

— دائرة القضاء-أبوظبي (@ADJD_Official) March 16, 2021

The Public Prosecution referred the four accused persons to the criminal court based on investigations that revealed a “gang” comprising of the four accused, working to promote false investment in the jewellery trading company – which was owned by one of the accused.

They used a website under the banner of ‘Gold Empire Management’ (GEM), the WAM report said.

Investigations disclosed that the accused targeted their victims through advertisements, videos and contests that were posted on GEM’s website and social media pages, urging them to invest in the gold business, officials said.

Each subscriber was required to pay a fee of Dhs2,000.

The accused also allegedly encouraged their victims to persuade others to participate in the “investment” via pyramid scheme, rewarding any person who brought in new subscribers with Dhs1,000 for each newcomer.

“This is a fraudulent method based on the idea of rolling over the sums collected from each subscriber, with the subscribers – who reached 4,000 – not getting any interest for the subscription they have paid,” the report stated.

Officials said confiscated items from the company included approximately 7,430 grams of 18-carat gold worth more than Dhs1.37m.

ADJD said the arrest of the defendants in the case and their prosecution are part of the UAE’s efforts to combat money laundering crimes.

It also urged the public to avoid being lured by false advertisements and to report any suspicious activity in this context.