10 Convicted of Luring Woman into Fake Investment, Ordered to Repay Dh761,000

Dubai Civil Court has ordered 10 individuals to jointly repay Dhs761,448 to an Arab woman after it was proven they embezzled her money through an electronic investment scam.

 

The group had already been prosecuted under Federal Decree-Law No. 34 of 2021 on Combating Rumours and Cybercrime, which criminalises online fraud, impersonation, and unlawful electronic transactions. In line with the principle that criminal liability carries civil consequences, the civil court used the final criminal conviction as binding evidence to compel restitution.

 

The case dates back to September last year, when the victim filed a police complaint after realising she had fallen prey to an electronic fraud. One of the defendants had contacted her via WhatsApp, luring her with promises of lucrative returns on a trading platform. He sent her links to a YouTube channel explaining how the scheme worked and to a subscription portal for transferring funds.

 

Trusting the scheme, she transferred Dhs761,000 over several days into their accounts. Later, the fraudsters pressured her to transfer more, but when she demanded her money back, they cut off all communication.

 

Investigators tracked down the suspects, who were referred to the Public Prosecution and later tried by the Misdemeanour Court, which fined each of them Dhs10,000. The Court of Appeal, however, overturned that ruling, obligating them to collectively repay the embezzled funds.

 

Following the criminal judgment, the woman pursued a civil lawsuit seeking repayment of her funds plus legal interest. She submitted the criminal court’s judgment and a prosecution certificate confirming its finality. The Civil Court ruled that the seizure of her funds caused direct financial harm, satisfying the conditions of civil liability: a harmful act, financial damage, and causation.

 

The court therefore ordered repayment with a 5 per cent annual interest from the date of the claim until settlement.

 

Legal advisor Dr Alaa Nasr explained that the ruling highlighted a key principle in UAE law -- that final criminal judgments are binding on civil courts regarding the factual basis of a case. This means the fraudulent act could not be re-litigated, and compensation under the Civil Transactions Law (Federal Law No. 5 of 1985) was warranted under tort liability, which requires restitution when unlawful acts cause harm.

 

By combining provisions of cybercrime law and civil liability, the court ensured the victim’s rights were restored while reinforcing deterrence against electronic fraud.

 

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