Dubai Villa Financing Scam: Three Men Jailed and Fined Dh900,000

A Dubai court has sentenced three Arab men to six months in prison and ordered them to jointly repay Dh900,000 to a married couple they defrauded in an elaborate real estate financing scam.

The defendants posed as representatives of a prominent property developer and persuaded the victims to invest in a villa project, promising mortgage financing through a company they had entirely fabricated. The couple transferred Dh800,000 as an upfront payment, only to discover that both the company and the supporting documents were forged.

Court records reveal that the wife initially responded to a social media advertisement offering mortgage-funding services. She was contacted by a man claiming to be the company’s sales manager. Following several meetings, the fraudsters presented paperwork that appeared authentic, including a commercial licence, a property-sale contract attributed to a major developer, and an alleged agreement with a government department.

Convinced of the offer’s legitimacy, the couple agreed to purchase a villa and paid the deposit. Shortly after receiving the money, the trio vanished. The husband  lodged a police complaint, leading to the arrest of the men, who were subsequently charged with fraud, forgery, and using forged documents.

The Criminal Court convicted the men, sentencing them to six months in jail, ordering the repayment of the defrauded sum, confiscating the fake documents, and directing deportation upon completion of their sentences.

The couple later pursued a civil lawsuit to recover their funds and claim damages. The Civil Court upheld the criminal ruling, confirming that the defendants had unlawfully seized the victims’ money and caused both financial and emotional harm. The court noted the couple endured not only monetary loss but also distress, erosion of trust, and disruption to their financial stability. Consequently, the defendants were ordered to return Dh800,000, pay an additional Dh100,000 in compensation for material and moral damages, along with five per cent legal interest from the date of the claim until full settlement.

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