Court convicts Shifau of money laundering over invalid TT scheme
On 30 November, Shifau was convicted on 16 charges related to fraud and the use of invalid documents.
The Criminal Court on Tuesday ruled that Hassan Shifau is guilty of money laundering in connection with a scheme involving invalid telegraphic transfers used in transactions with foreign companies.
Shifau was accused of importing goods through Kingdom of Fruits, a business registered with the Ministry of Economic Affairs, and collaborating with another individual to defraud foreign suppliers by submitting invalid payment documents.
The prosecution filed 23 charges against Shifau, comprising nine counts of knowingly producing invalid documents, seven counts of fraud and deception, and seven counts of money laundering.
On 30 November, Shifau was convicted on 16 charges related to fraud and the use of invalid documents. Tuesday’s hearing addressed the remaining seven money laundering charges.
Judge Ali Nadeem, who presided over the case, ruled that all seven money laundering charges had been proven. The court found that Shifau had fraudulently obtained shipments of fruit, including oranges, mandarins and grapes, by sending invalid telegraphic transfers to multiple foreign suppliers.
The prosecution sought an order to recover the value of the goods from Shifau. However, Judge Nadeem ruled that recovery could not be ordered, stating that the prosecution had not established the location of the funds involved.
The prosecution has previously stated that the total value involved in the case exceeded USD 1.9 million.
Following the convictions, the court proceeded to continue the sentencing phase, which includes the 16 charges for which Shifau had already been convicted. However, Shifau’s lawyer did not appear at Tuesday’s hearing and requested that sentencing be scheduled for another date.
Judge Nadeem ruled that sentencing would proceed on Thursday and stated that punishment would be imposed even if the defence lawyer failed to appear. Shifau requested a postponement until the following Tuesday, citing his lawyer’s illness and indicating he would appoint another lawyer if necessary.
The court declined the request, noting that the defence lawyer had failed to appear at two previous hearings and had not submitted a medical certificate. Judge Nadeem said the court would consider taking action in relation to the repeated non-appearance.
According to the charges, Shifau committed the offences by producing invalid documents to show payment for goods purchased from foreign companies. The prosecution filed the charges on 27 April 2023.
In the course of proceedings, the prosecution had earlier proposed a plea agreement that would not have required a custodial sentence. The court declined to accept the agreement, stating that it did not provide for compensation to the affected parties.
