Court Clears Man in Dh1.6M Investment Row, Distinguishes Fraud from Loss

Dubai criminal court has acquitted a man accused of misappropriating Dh1.6 million in an investment dispute, ruling that a failed business arrangement does not automatically amount to a criminal offence.

The case centred on funds transferred by the complainant to the accused under an investment arrangement that allegedly promised monthly returns. Court records showed that some profits had initially been paid, but payments later stopped after the business ceased operations and its owner reportedly left the country.

Prosecutors charged the defendant with breach of trust and misappropriation, arguing that the money had been entrusted for a specific purpose and was unlawfully retained.

However, the court found that the prosecution failed to establish criminal intent or dishonest appropriation of funds beyond reasonable doubt.

In its judgment, the court said the money had been provided as part of an investment arrangement rather than a custodial trust, where funds are temporarily held on behalf of another party. The court also noted that earlier profit payments reflected an ongoing commercial relationship between the parties.

The ruling stated that there was no evidence proving fraud, deliberate misuse of funds, or intentional conversion of money for personal gain.

The court concluded that the matter was essentially a failed or disputed investment that could give rise to civil or commercial liability, rather than criminal liability. It stressed that criminal convictions must be based on clear and conclusive evidence, not suspicion or incomplete proof.

The judgment reinforces the principle that genuine fraud cases must be clearly distinguished from ordinary commercial or investment-related losses, which fall under civil jurisdiction.

The defendant was acquitted of criminal wrongdoing, while the complainant retains the right to pursue civil remedies, including claims for damages, debt recovery or contract enforcement through the civil courts.

For any enquiries or information, contact ask@tlr.ae or call us on +971 52 644 3004. Follow The Law Reporters on WhatsApp Channels.