Dubai Court Holds Fraudster Accountable in Cross-Border Fake Securities Investment Scam, Ordering Over Dh10 Million Repayment and Dh500,000 in Damages

A Dubai court has ordered a convicted fraudster to repay more than Dh10 million after uncovering a cross-border investment scam that siphoned millions of dollars from a fellow national through a fictitious securities venture.

The case highlights how fraudulent investment schemes continue to exploit jurisdictional gaps, with perpetrators fleeing their home countries while victims pursue recovery through international civil action.

Fake Securities Venture Used to Extract Millions

Dubai Court Holds Fraudster Accountable in Cross-Border Fake Securities Investment Scam, Ordering Over Dh10 Million Repayment and Dh500,000 in Damages

According to case records, the defendant persuaded the victim to invest in what was presented as a newly established securities trading company in another Arab country. Promising high returns and positioning the venture as a legitimate financial business, the fraudster convinced the victim to transfer approximately $2.7 million through multiple bank transactions.

Subsequent investigations revealed that the entity did not exist in any legal or regulatory capacity. It was neither registered nor licensed with the relevant capital markets authority and had no operational presence. Authorities later determined that the so-called company functioned solely as a front to collect funds, which were never invested.

This pattern closely mirrors tactics seen in fake broker and investment app scams, where fabricated entities are used to create an illusion of legitimacy before funds are misappropriated and routed across borders (as seen in previous BrokersView reports on pseudo-broker investment fraud networks).

Prior Conviction and Flight Complicate Recovery

The defendant had already been convicted in his home country, where criminal courts sentenced him in absentia to 15 years in prison and imposed financial penalties for defrauding multiple victims. He fled before serving the sentence or returning any of the stolen funds, later resurfacing in the UAE.

Dubai judges rejected attempts to dismiss the civil claim, finding that the fraud was carried out in a personal capacity rather than through any legitimate corporate structure. The ruling reinforces how civil proceedings are increasingly being used to pursue restitution when criminal enforcement is delayed or fragmented across borders.

Compensation Beyond Stolen Funds

In addition to ordering repayment of the full $2.7 million (or its equivalent in dirhams), the court awarded Dh500,000 in damages, recognizing not only direct financial loss but also prolonged deprivation of funds and emotional distress suffered by the victim. Legal interest and costs were also imposed.

While the case was adjudicated in Dubai, it underscores a broader trend: victims of international investment fraud are increasingly relying on cross-border legal mechanisms to recover assets when perpetrators exploit regulatory and geographic loopholes.

BrokersView Notes: Investment Fraud Remains Borderless

Cases involving fictitious investment entities, unlicensed securities operations and false promises of high returns continue to surface across jurisdictions. Fraudsters frequently leverage trust, professional narratives and cross-border mobility to delay accountability. As seen in multiple BrokersView investigations into online investment scams and pseudo-broker schemes, asset recovery often depends on coordinated international legal action rather than criminal prosecution alone.