JEDDAH: The administrative court in Jeddah yesterday stopped procedures to declare a notorious fraudster bankrupt, a move that would have helped him shirk off court rulings against him.
The court also rejected Ibrahim Abu Al-Jadail’s plea to reach a settlement with shareholders in his fake company, Jadailco, whom he claimed are his trade partners. It further rejected his offer to provide financial guarantees, saying what he was offering was insufficient in ensuring the rights of claimants.
Abu Al-Jadail has objected to the rulings and said he would appeal against them.
A total of 800 rulings have been issued against Abu Al-Jadail so far. The rulings range from the abrogation of his fake companies to preventing him from traveling abroad. All of Abu Al-Jadail’s dealings with government departments and chambers of commerce have also been frozen and he is banned from selling real estate registered under his name or the names of fake companies he has managed.
Abu Al-Jadail is accused of swindling money from more than 4,000 shareholders by setting up a fake limited liability company. The court was shown evidence that Abu Al-Jadail collected funds from his victims to invest in Sawa operation, and then convinced them to invest these funds into his own companies.
The court also learned that Abu Al-Jadail had obtained a license to establish a financial investment company for a year but did not make any investments during this time.
He also failed to return shareholders’ funds, causing the court to cancel his license.
