One Arrested For Cheating 
through Pyramid Scheme

DUBAI - One person was recently arrested for allegedly running a pyramid investment scheme through a website. He has been referred to Dubai Police Prosecution.


Amira Agarib

Published: Sun 13 Dec 2009, 12:50 AM

Last updated: Thu 2 Apr 2015, 9:28 AM

According to the General Department of Electronic Crimes, Dubai Police, the website promised people monthly profits and returns on their investments within six months.

Pyramid schemes typically generate false profits by continually recruiting investors and passing on initial investments as profits.

The alleged website provided links to fake web sites that showed share circulations and periodic returns.

Major Saeed Al Hajiri, Director of General Department of Electronic Crimes, said that in a complaint lodged against a Dubai-based company, a European woman stated that in September she had met two Asian women who introduced her to another Asian from another country. They told her that they had an investment company, which specialised in buying shares from some banks in Dubai.

They also told the European woman that they would arrange a profit of 20 per cent on her investment and that her capital would be returned in six months.

Al Hajiri said that the European woman handed over to them a huge amount in US dollars and received an investment certificate. When she checked the websites she saw her name and the circulation of shares.

The complainant noticed that the company had made all payments and when there were indications that her money had multiplied, she made more investments. The complainant stated that the company held a meeting with participants in a well-known hotel where her sister attended on her behalf and they gave her a part of the profits.

After a period of time, the complainant realised that she had been cheated and all the amounts purportedly added to her shares were not true.

Al Hajiri said that following the complaint, investigations were launched and the police soon found out about the person who had made the hotel reservation for the suspect company’s meeting.

A trap was laid and the suspect was arrested on arrival at the Dubai International Airport.

A laptop believed to have been used in the alleged crime was recovered from him.

He said that the police had received complaints from only two Europeans against this company, who had lost huge amounts by investing in non-existent shares.

Al Hajiri pointed out that people running such fraudulent operations usually flee and suspend the web site after collecting huge amounts.

The suspect, who cheated the European woman, was arrested because she informed the police in time.

Brigadier Khalil Al Mansouri, Director of General Department of Criminal Investigation, said the police has computer experts and can solve any type of electronic crimes.

He called on public not to believe fraudsters and fall prey to their lucrative offers without making sure about location of the company and its history.

He said no company could give afford to give huge money in just a few months.

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