Saturday, April 16, 2016

STC Fraud Case: Security Guard and AC Technician given 20 Years Jail, 2000 lashes

Mobile phone company scams are so common these days. Recently a court of Jeddah has pronounced its final verdict for the 8 years old scam which caused loss of millions of riyals of many investors. Abdulaziz Al-Johani and Mohammed Al-Shamrani promised investors that they will get monthly profit on their investments which were all fake and embezzled cash and other investments made by public for their personal assets. The case had been filed in court 8 years ago and the verdict of judges had been challenged in three courts. The third court pronounced the punishment for company employees. The primary defendant Abdulaziz Al-Johani is charged with 20 years of imprisonment along with 2000 lashes.

The second person and companion of Abdulaziz Al-Johani in scam Mohammed Al-Shamrani received punishment of 12 years of imprisonment and 400 lashes. Both partners are fined for SR 100,000 and SR 80,000.  The lashes have to be beaten in multiple sessions publically in order to spread awareness among public that the scammers can’t hide themselves from the eyes of law. 59 intermediaries have also found involved in the scam which are issued subpoenas for submission of testimony against scam of these two persons. The primary defendant embezzled amount of SR 1.2 billion which was invested by 40,000 investors.

The court has ordered the swindler to return money of those investors. The date of the imprisonment will be started from the day the swindlers were put behind the bar. Al-Johani was arrested 10 years back on the order of court and has already spent his 10 years in prison and has to spend 10 years more. The lashes punishment will be applied to him in 40 sessions on public places. Al-Shamrani’s has already spent 4 years in prison and have to spend 8 more. The lashes will be applied on in in 16 sessions.

Al-Johani, 49 is former STC security guard who got the idea to pool fund by attracting investors by selling them shares against SR 8,500. The swindler made a promise to investors that they will get the monthly return of SR 1,500 against one share. The primary swindler got the idea of gathering fund when he visited Al-Shamrani for purchase of air conditioners on installment basis. While dealing with the vendor, he proposed him that why they don’t sell pre-paid Sawa mobile phone sim to public on fewer prices as available in open market.

Al-Shamrani welcomed his idea and made the very first investment of the company by paying SR 17,000. Out of the first investment, Al-Johani paid SR 4,000 for the cost of air conditioners purchased from Al-Shamrani. Al-johani paid profit of SR 1200 to Al-Shamrani for his very first investment. This was the first step, soon the scam went viral and people started making investments. Just in six months, Al-Johani gathered that much money that he was able to purchase a building, a plot of land and a villa.

Source: Saudi Gazette

Punishments under Saudi Laws
  1. SR 100,000 Fine and 2 Years Jail to Landlords who let Illegal Residents stay in Flats
  2. 16 Years Jail for the terrorist who plotted to Kill Grand Mufti of Saudi Arabia
  3. Saudi man gets 30 Lashes and 1 week Jail for slapping and spitting on Wife
  4. Women given 6 months Prison, 50 lashes for working as ‘short term marriage’ mediator (Pimps)
  5. 100 Lashes, 30 days Imprisonment for Celebratory Firing at Weddings


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