The auction of the 11,422 square meter plot of land is to be carried out to compensate Al-Seraisry’s victims.
Judge Abdul Aziz Al-Shathri of the Jeddah Summary Court had ordered the liquidation of Al-Seraisry’s properties and designated Faisal Al-Sabban as liquidator and Saleh Al-Ghamdi as attorney.
Al-Seraisry was accused of swindling SR1.2 billion from thousands of investors by floating a company, the Global Bourse, in 2004 promising investors that the company will invest in international share markets.
But when it became evident that Al-Seraisry was a swindler, he left the Kingdom with some SR500 million collected from his clients. Saudi police sought the help of Interpol and Al-Seraisry was subsequently arrested in Dubai in 2006. He was then brought to Jeddah and went on trial along with dozens of his accomplices. In August 2007, Al-Shathri handed him 15 years in prison, 1,000 lashes and a ban on traveling abroad.
The property on the Corniche is expected to fetch SR300 million in the auction though some real estate sources estimate its value to be between SR230 million and SR250 million.
The court also seized SR30 million found in his bank accounts and a 100,000 square meter property in Madinah said to be worth SR45 million.
Besides Saudis, many Arab and Gulf investors are likely to participate in the auction.
The proceeds of the auction and money from Al-Seraisry’s accounts is enough to cover the claims of 85 percent of his victims, a source said.
Al-Shathri has also appointed auditors to determine the amount of money invested by stakeholders in Al-Seraisry’s company to determine how much they should be compensated.
The Court of Grievances had earlier ordered Al-Seraisry to pay SR60 million to some of his victims. A police team will also be present at the auction to control bidders and guarantee proceeds run smoothly.
In October, 308 plots of land belonging to Fouad Al-Ajhouri, the man who swindled more than SR1 billion in a real estate investment scam, was auctioned off under court orders. The plots in Jeddah’s posh Al-Shatie district was sold for a total of SR143.58 million in the three-day auction.
Al-Ajhouri has been in prison for the last 28 years after being convicted of swindling money from 8,765 investors from 37 countries in fake real estate investments.
