Court directs Alhan-linked Ponzi company to repay investor
The judgment directed Alhan and Shahban Fahmy to settle the amount within 15 days.
The Civil Court has ordered a company linked to a Ponzi scheme led by former Member of Parliament Alhan Fahmy to pay more than MVR 500,000, along with unpaid returns, to an investor.
The case was filed on 22 October against Kings Capital Holdings and its shareholders, Alhan Fahmy and Shahban Fahmy. The plaintiff sought recovery of MVR 587,466 in relation to two investments made in February 2022, including expected returns and court costs.
The court issued the order after the defendants failed to appear in court. The judgment directed Alhan and Shahban Fahmy to settle the amount within 15 days.
In its ruling, the court said agreements had been entered into between the parties and that documents submitted to the court showed the funds were due to the investor.
According to the case, the plaintiff first invested MVR 20,000 on 9 February 2022 under a package referred to as “Bronze”. Under the agreement, the investor was to receive MVR 46,260 in returns over 24 weeks. However, he received only MVR 15,400, leaving MVR 30,840 unpaid.
The plaintiff made a second investment of MVR 100,000 on 15 February 2022 under a package known as “Gold New”. Under that agreement, returns of MVR 500,000 were promised over 100 weeks. The investor received MVR 10,000, with MVR 360,000 remaining unpaid.
On 10 March 2023, the Maldives Monetary Authority issued a public warning advising caution over the scheme, which was promoted on social media platforms including Facebook and Telegram. Following the warning, bank accounts linked to Kings Capital Holdings were frozen and a criminal investigation was launched.
Several investors have filed cases in the Civil Court seeking recovery of funds linked to the scheme. Criminal charges were initially brought against three shareholders of the company, who are brothers of Alhan Fahmy. However, the Prosecutor General’s Office later withdrew the charges, stating that the decision was taken after a number of victims had been compensated.
