The Civil Court has ordered Kings Capital Holdings Private Limited to compensate three of the victims of the Ponzi scheme orchestrated by the company.
The Civil Court ordered Kings Capital Holdings to collectively pay a total of USD47,000 to the plaintiffs across three distinct lawsuits. As such, the court ordered the company to pay USD32,000 in compensation and USD4,700 for trial costs to the plaintiff in the first case. In addition, the court awarded USD3,700 to the plaintiff in the second case and USD7,500 in the third case.
The judgment, delivered in the absence of the shareholders of Kings Capital Holdings, mandates the company to remit the specified amount to the Civil Court within 15 days from December 25. The Civil Court stated the court documents were sent to the shareholders on December 3 but the company did not respond. The court ruled in its absence because the shareholders failed to respond to the lawsuit within the stipulated time.
The Prosecutor General's Office (PGO) has also filed a case against three shareholders of Kings Capital Holdings at the Criminal Court on November 23, presenting a total of 13 charges against them. The charges specifically relate to the 13 victims that were affected by the Ponzi scheme.
Parliamentarian Alhan Fahmy, who founded Kings Capital Holdings, is at the centre of the allegations. The three shareholders, including Alhan, stand accused of money laundering and introducing a fraudulent investment scheme to the public, targeting numerous Maldivian citizens. The other two shareholders identified as Shazban Fahmy and Shahuban Fahmy, brothers of Alhan Fahmy, also face 13 charges each related to fraud. A total of 39 charges have been filed in connection with the case.
The PGO clarified that the charges against Kings Capital Holdings revolve around the company extracting varying sums of money from the public by falsely promising financial benefits through different investment packages offered by Kings Forex Trading. The scheme operated publicly in 2021 and 2022, accumulating over USD6.3 million in investments.