Cayman Islands Fraud Claim Falls Flat for Saudi Company

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The Cayman Grand Court has dismissed a USD $9 billion fraud claim in the case of Ahmad Hamad Algosabi & Bros Company v Al-Saneia, one of the largest corporate collapses of the financial crisis. The dispute concerns a form of fraud whereby a supposed Business Owner entices new investors and pays profits to earlier investors using funds obtained from the newer investors.

In which an official of Ahmad & Bros Company investment division purportedly misused his authority for a period of over 30 years in order to enter into billions of dollars’ worth of revolving credit facilities using the Ahmad & Bros name as insurance, until the financial crash in 2008 accidently revealed the extent of the company’s debts and the investor scams.