UAE gold scam: 4 fined Dh10 million each for duping 4,000 Filipinos

Four Filipino expats in the UAE have been sentenced to five years in jail each after defrauding thousands of residents in a gold investment scam. They were also found guilty of money laundering and had been ordered to pay a fine of Dh10 million each.

The defendants reportedly duped around 4,000 Filipinos in the UAE in what appeared to be a pyramid scam, according to records of the Abu Dhabi Criminal Court.

Through advertisements and posts on their website and social media pages, they lured victims into ‘investing’ in their bogus gold business by paying a subscription fee of Dh2,000, investigations revealed. They were using a website under the banner of ‘Gold Empire Management’ (GEM).

“They encouraged their victims to persuade others to participate in the ‘investment’ and rewarded any subscriber who brought in newcomers with the sum of Dh1,000 for each new member,” the Abu Dhabi Judicial Department (ADJD) officials explained in a statement.

“This is a fraudulent method based on the idea of rolling over the sums collected from each subscriber, without the subscribers getting any interest for the subscription they have paid.”

Besides the individual jail terms and fine, the jewellery company — owned by one of the accused — has been ordered to pay Dh50 million. Seven 7.4kg 18-carat gold, worth Dh1.37 million, was also seized from the defendants. The gang will be deported after serving their sentences.

The ADJD has urged the public to be wary of such false advertisements and report any suspicious ‘investment offers’. “The entire society is directly responsible for protecting the community’s economic and social security. Crime reporting is both an individual and collective responsibility, helping the authorities deal and prevent these crimes more effectively,” it added.

Ismail Sebugwaawo

A professional journalist originating from Kampala, Uganda, Ismail is a happy father with strong attachment to family and great values for humanity. He has practiced journalism in UAE for the past 13 years, covering the country's parliament (FNC) and crimes, including Abu Dhabi Police, public prosecution and courts. He also reports about important issues in education, public health and the environment, with a keen interest in human interest stories. When out of reporting duties, he serves the Ugandan community in Abu Dhabi as he wants to see his countrymen happy. Exercising and reading are part of his free time.