Fake Instagram investment ad: Man ordered to return $20,000 to woman with AED 10,000 compensation

The Abu Dhabi Court for Family, Civil and Administrative Claims has ruled that a man must return $20,000, or its equivalent in UAE dirhams, to a woman after it was proven that he had taken her money by convincing her, through a fake advertisement on Instagram, to invest in electronic trading. The court also ordered him to pay AED 10,000 in compensation for the material and moral damages she suffered.

In the case, a woman filed a lawsuit against a man, demanding that he return $20,000, or its equivalent in UAE dirhams. She also sought AED 20,000 in compensation for the material, moral and psychological damages she suffered as a result of his unlawful actions, in addition to legal fees and court costs.

The woman stated that while browsing Instagram, she came across an investment advertisement promising high profits through electronic trading. She contacted the advertiser via WhatsApp and was persuaded to transfer money for investment purposes and financial returns. The plaintiff subsequently transferred the claimed amount in instalments from her bank account to the defendant's account. When she later requested the return of her money and the promised profits, he continued to delay payment. The defendant was later convicted in a criminal case and fined AED 20,000.

In its ruling, the court said it is legally established that no one may take another person's property without a legitimate reason. If someone does so, they must return it and account for any benefits or gains derived from it. The court noted that a criminal judgment carries authority in a related civil case whenever it has conclusively determined the occurrence of the act that forms the common basis of both cases, as well as its legal description and attribution to the perpetrator. The court found that the plaintiff was entitled to seek the return of her money and ruled that the defendant must repay the amount.

Regarding compensation, the court noted that the defendant had been found guilty of unlawfully appropriating the plaintiff's money. As a result, the element of fault had been established and conclusively proven against him. The court found that this conduct caused both material and moral harm to the plaintiff. The material damage stemmed from her inability to use the seized funds, while the moral damage arose from the psychological distress she suffered. The court therefore ruled that the defendant must pay the plaintiff $20,000, or its equivalent in UAE dirhams, as well as AED 10,000 in compensation for all material and moral damages. It also ordered him to pay the lawsuit's fees and expenses, while rejecting all other claims.