Charges dropped against Alhan and brothers in alleged Ponzi scheme after victims compensated

Alhan Fahmy. (File Photo/PSM)

The Prosector General’s Office (PGO) announced on Thursday that it has dropped criminal charges against former lawmaker Alhan Fahmy and his two brothers for allegedly running a Ponzi scheme, after the 13 victims who came forward were compensated and said they no longer wish to pursue legal action.

In 2022, the police opened an investigation against Alhan and his younger brothers, Shazban Fahmy and former Maldives Media Council president Shahban Fahmy, for allegedly using their company, Kings Capital Holdings, to run a fraudulent investment scheme in violation of Maldives’ financial securities laws and regulations, cheating investors out of money on the promise of high returns, and laundering the money.

13 victims came forward and cooperated with the police.

In November 2023, the PGO charged the trio with 13 counts of theft by deception under Section 212 of the Penal Code.

Former MP Alhan Fahmy (L) and his brothers.

But in a statement on Thursday morning, the PGO announced that the defendants had asked for a review of the charges citing they had paid compensation to the 13 victims in the case.

According to the PGO, the office verified through the police that all 13 victims have been compensated, and said they no longer wish to pursue legal action.

The PGO said that it has therefore decided to withdraw charges against the trio in light of the new developments.

But the office added that the police continue to investigate the case for more possible victims in the case, and will be filing charges once the investigation wraps up.

“Therefore, efforts remain ongoing to facilitate compensation through the criminal justice system for the people who are entitled to it in this case but have yet to receive it,” added the PGO in its statement.

The Fahmy brothers had run their Forex trading scheme between 2021 and 2022, before it was shut down by the authorities.

They insist that it was not a Ponzi scheme, but a legitimate one.

Scores of people invested over MVR 98 million in the scheme.