The investment scam was disguised as a car trading business that encouraged customers to invest money to buy cars then resell them for a substantial profit, according to local media reports.
Returns of between 70-100% were promised.
Reports have suggested that between AED1.3bn and AED2.3bn was defrauded from 3,700 people.
However, Abu Dhabi attorney general, Ali Al Balushi, clarified that the number of complaints against the four investment funds was 1,909, with total deposits being AED800m, reports Emirates News Agency (WAM).
Little detail was provided about the nature of the four funds.
Al Balushi said the scam was the first case of investment fund fraud in the Emirate for five years.
Second-hand car salesmen
Prosecutor Hassan Al Hammadi said that the scheme worked in two parts. The men would buy second-hand cars using post-dated cheques. They would then sell them to other victims but not deliver them.
The money from the sale would be used to pay back previous investors.
Speaking in March shortly after the first arrests were made, the director general of Abu Dhabi Police, major general Maktoum Al Sharifi, said it was the largest scam in the UAE capital city’s history.
He added that there was no investment and that victims received profits from their own money, reports Arabian Business.
Police complaints
Police began investigating the scam 11 months ago after receiving more than 400 complaints in five days.
To date, 54 mostly Emirati suspects have been referred to the criminal court. Eight suspects were caught with the help of Interpol.
The suspects face charges of fraud, money laundering and practising an economic activity while unlicensed.
One of the accused has admitted to the authorities that he was part of an unlicensed investment business with fraudulent intent.
