Dubai court orders fraudsters to pay investor AED4.65 million in Golden Visa property scam

Dubai: The Dubai Civil Court of First Instance has ordered two fraudsters to jointly pay an investor AED4.65 million, including the return of AED4.35 million and AED300,000 in compensation, after they deceived him with promises of a property investment linked to obtaining a UAE Golden Visa. According to court records, the claimant stated that the two defendants offered him an opportunity to invest in a property in Dubai, assuring him that the investment would generate substantial returns and help him obtain a Golden Visa. To support their claims, they showed him documents relating to a property allegedly owned by one of them, prompting him to hand over AED4.35 million in cash to complete the transaction. The claimant later discovered that no sale or ownership transfer documents had been executed and that he had not obtained the Golden Visa he had been promised. He subsequently filed a complaint with the relevant authorities. The matter was referred to the criminal court, which convicted the defendants of fraudulently obtaining the claimant's money by exploiting his desire to purchase a property and secure a Golden Visa. The criminal court sentenced the defendants to one year in prison, imposed a joint fine equal to the amount involved in the offence, and ordered their deportation. The judgment later became final after the appeal was rejected and the legal period for filing a cassation challenge expired. In the civil proceedings, the claimant sought the return of the AED4.35 million, in addition to AED1 million in compensation for the material and moral damages he said he suffered as a result of losing access to his funds, losing investment opportunities and enduring lengthy legal proceedings. The court stated that the final criminal judgment conclusively established the occurrence of the fraud and the defendants' responsibility for it, preventing the civil court from revisiting the issue of fault. The court found that the claimant had suffered direct material damage through the loss of AED4.35 million, requiring the defendants to return the full amount. It further held that the damage extended beyond the loss of the funds themselves and included the claimant's inability to invest the money for nearly a year, as well as the effort and hardship involved in filing complaints, participating in investigations and pursuing litigation. Taking these factors into account, the court awarded AED300,000 in compensation for the material and moral damages suffered by the claimant. The ruling ordered the defendants to pay a total of AED4.65 million, in addition to legal interest at 5 per cent on the principal sum from the date the lawsuit was filed, and the same rate on the compensation amount from the date the judgment becomes final until payment, as well as fees, expenses and legal costs.