Charges dropped after compensation payout to Alhan Ponzi victims

The Prosecutor General’s Office has withdrawn 13 scam charges against Kings Capital Managing Director Alhan Fahmy and his two brothers after confirming that compensation had been paid to victims of the company’s alleged investment fraud.

Police had launched a criminal investigation into Alhan and other directors of Kings Capital Holdings, accusing them of collecting large sums from investors under the guise of an online trading scheme. The case was referred to the Prosecutor General’s Office (PG) in November 2023.

The brothers; Alhan, Shazban Fahmy, and Sahban Fahmy had faced 13 counts of fraud-related offences for allegedly laundering large amounts of money through Kings Capital in violation of the Financial Securities Act and related regulations.

Although Alhan’s lawyer had previously sought a review of the case, Prosecutor General Abbas Shareef decided last year to proceed with the charges. However, PG office said on Thursday that while the case was pending in court, the defendants had submitted a request to withdraw the charges, stating that they had fully compensated 13 victims affected by the alleged crimes.

PG office confirmed that all 13 individuals had received their compensation and had informed authorities they no longer wished to pursue the matter. PG office said that the charges were withdrawn because all the victims who sought compensation through the criminal justice system have received their money back.

Police, however, are continuing to investigate other victims who are yet to be compensated. PG office said additional prosecutions could follow once investigations are completed.

According to police, Kings Capital Holdings owned by former MP Alhan Fahmy and members of his family allegedly collected more than MVR 98 million from 1,864 investors under the promise of returns from online trading and cryptocurrency transactions. Investigators found that over MVR 65 million remains unpaid, while parts of the funds were transferred to shareholders’ personal accounts and used for private expenses.

Police records also show that around MVR 39 million was paid out to investors through forex trading before the company collapsed.