Civil Court Orders Fahmy Brothers to Pay Compensation in King’s Capital Ponzi Case

The Civil Court has ordered Alhan Fahmy and his brother Shahban Fahmy to pay MVR 587,466 in compensation to an investor in a scheme run by King’s Capital Holdings.

In a ruling delivered on Thursday, the court sentenced the brothers in absentia after they failed to appear for hearings, ordering them to make payment within 15 days.

advertisement

advertisement

advertisement

The case was brought by a private individual who said he invested MVR 120,000 on two occasions with King’s Capital. The claimant sought the return of the invested amount as well as MVR 390,840 in profits. The court ruled that the sums claimed were owed and also ordered the defendants to pay MVR 76,626 to cover filing and related legal costs.

Alhan and Shahban Fahmy were summoned to court three times following the filing of the case but did not attend, prompting the court to proceed in their absence.

Separately, a criminal investigation has been ongoing into the activities of King’s Capital’s directors in connection with an investment scheme involving a large number of people. The case was submitted to the Prosecutor General’s Office in November 2023. Thirteen charges were filed in the Criminal Court against company directors, alleging the operation of an investment scheme in violation of Maldivian laws and regulations and the laundering of large sums of money under the guise of investor returns.

Police have said King’s Capital Holdings collected more than MVR 98 million from 1,864 investors, promising returns from forex and cryptocurrency trading. An investigation by the Maldives Police Service found that over MVR 65 million remained unpaid, and that some funds were transferred to the personal accounts of shareholders and used for personal expenses.

Alhan had previously sought a review of the criminal case. Prosecutor General Abbas Shareef initially decided to proceed with the charges, but later agreed in October this year to withdraw them following compensation to complainants.

The Prosecutor General’s Office said police are continuing investigations into other claims involving additional individuals who may still be eligible for compensation, adding that further legal action will be considered once those cases are concluded and submitted for review.