CAYMAN ISLANDS: GRAND COURT DISMISSES MULTI-BILLION FRAUD CLAIMS IN ONE OF LARGEST PONZI SCHEMES IN HISTORY

On 9th July, Harneys published an article saying that, in a landmark ruling, the Grand Court emphatically dismissed a claim in Ahmad Hamad Algosaibi & Brothers Company (AHAB) v Al-Sanea, which involved allegations of fraud arising from one of the largest corporate collapses of the financial crisis.  The court found that the AHAB partners had known of and authorised fraudulent borrowing through the AHAB’s investment division, Money Exchange, as well as AHAB’s other financial businesses over a period of 30 years.  The claims included allegations of forgery and the siphoning proceeds of fraud to special purpose vehicles in the Cayman Islands, Switzerland and Bahrain.  It was alleged that, over a 30-year period, the head of Money Exchange abused his authority to enter into billions of dollars’ worth of revolving credit facilities using only the AHAB name as collateral, unknown to the AHAB partners.

https://www.harneys.com/news-and-deals/grand-court-dismisses-multi-billion-dollar-ahab-fraud-claims-in-one-of-the-largest-ponzi-schemes-in-history/

Author: raytodd2017

Chartered Legal Executive and former senior manager with Isle of Man Customs and Excise, where I was (amongst other things) Sanctions Officer (for UN/EU sanctions), Export Licensing Officer and Manager of the Legal-Library & Collectorate Support Section

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

w

Connecting to %s