Four men in Abu Dhabi fined Dh10m and jailed for running a Ponzi gold scheme

A gold trader and three other men have been fined Dh10 million and sentenced to five years in jail for cheating 4,000 customers.

The Anti-Money Laundering and Tax Evasion Court of Abu Dhabi Judicial Department found the men guilty of running a Ponzi gold investment scheme.

The group, all Asian, attracted custom through advertisements, videos and contests posted on the website and social media pages of a jewellery trading company.

Customers were asked to subscribe to the website for Dh2,000 and received Dh1,000 for each referral.

One of the convicted men was the business owner. The company will be fined Dh50m.

Authorities seized 7.4 kilograms of 18-carat gold valued at more than Dh1,370,000 ($373,000).

The judicial department urged the public to not fall for false claims of hefty returns. Officials urged people to report any suspicious activity.

The men were charged with money laundering crimes and misappropriation of victims’ cash.

All four will be deported after serving their sentences.