JEDDAH, 11 October 2003 — The Gulf victims of a major financial scandal, including nearly 500 Saudis, are planning to form an association to recover an estimated SR2.33 billion, Al-Watan reported yesterday.
The scandal involving Hebatco Trading and Contracting Company, based in Kuwait, caused shock waves among some 5,000 Gulf investors in the firm. Saudi investors alone had invested SR890 million in the company.
Al-Watan said the scandal-hit company was owned by an Egyptian named Muhammad Ali Suleiman, who is believed to be in London, where he has sought the assistance of a group of seven lawyers.
Courts in Kuwait found in favor of a number of Suleiman’s victims against the company and have sentenced Suleiman to 70 years in jail for fraud.
According to the Arabic daily, the victims are appealing to the British government to help them recover their money as the company now operates under its jurisdiction.
They have appointed two lawyers to represent them with the British government and set out a timetable for repayment of their money by the company.
Hebatco, which was registered in Kuwait, had been receiving money from Gulf shareholders since 1998. It closed its Kuwaiti headquarters in May 2002 and is now registered in the UK, having changed its name to Solarus Group, Al-Watan said, adding that the company had sold a mozzarella factory in Brent Ford, west London for 135 million pounds.
Abdussalam Al-Ai, one of the victims, told the Arabic daily that some victims of the scandal with limited income had suffered nervous breakdowns after discovering that Suleiman had run away with their money.
A Kuwaiti lawyer said the defrauded investors had approached Solarus Group in the hope that it could be committed to paying back the money. A number of shareholders have appointed their own lawyers.
