Dubai: Three men jailed, ordered to pay Dh900,000 over villa financing scam

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

The defendants posed as representatives of a well-known property developer and convinced the victims to invest in a villa project, promising mortgage financing through a fake company they created. 

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The couple transferred Dh800,000 as an upfront payment, only to discover later that the company and documents were forged.

According to court records, the wife first came across a social media advertisement promoting a mortgage-funding service. She was contacted by a man who introduced himself as the company’s sales manager. 

After several meetings, the fraudsters presented what appeared to be authentic paperwork, including a commercial licence, a property-sale contract attributed to a major developer, and an alleged agreement with a government department.

Believing the offer to be genuine, the couple agreed to purchase a villa and paid the deposit. Soon after receiving the money, the trio disappeared. The husband filed a police complaint, leading to their arrest. Prosecutors charged them with fraud, forgery, and use of forged documents.

The Criminal Court convicted the men, sentencing them to six months in prison, making them repay the amount defrauded, confiscating the fake documents, and ordering their deportation after serving their terms.

The couple later filed a civil lawsuit to recover their funds and claim damages. The Civil Court reaffirmed the criminal ruling, finding that the defendants had unlawfully seized the victims’ money and caused both financial and emotional harm.

The court said the couple not only suffered monetary loss but also endured distress, loss of trust, and disruption to their financial stability. It ordered the defendants to return Dh800,000 and pay an additional Dh100,000 as compensation for material and moral damages, along with five per cent legal interest from the date of the claim until full settlement.