Bahrain: Court Schedules Verdict In Case Of Major Fund Fraud Involving 10 Defendants
The Financial and Money Laundering Crimes Prosecution had received multiple complaints from the Social Insurance Organization reporting that several company owners misappropriated over BD 90,000. The suspects allegedly submitted forged documents and entered false information into the organization's electronic system, adding or removing insured employees to exploit social insurance benefits. This manipulation allowed them to illegally claim retirement pensions, end-of-service bonuses, and lump-sum compensation.
Similarly, Tamkeen reported that the same individuals embezzled more than BD 140,000 from the fund, which is meant to support employee wages. They reportedly used forged documents submitted through the fund's electronic system to access these funds.
Following the complaints, the Public Prosecution launched an investigation, summoning representatives from both the Social Insurance Organization and Tamkeen, among others. Travel bans were imposed on the defendants, and their accounts and assets were frozen. The Anti-Corruption Crimes Directorate and the National Centre for Financial Investigations traced the defendants' financial transactions, confirming their involvement. Additionally, employees of the implicated companies, who were exploited in the scheme, were questioned, and a forensic expert verified that their employment contracts had been forged.
The case highlights ongoing efforts by Bahraini authorities to crack down on financial fraud and protect public funds.
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