Al Khair Group" Scam: Over 1,000 Victims Reported as Investigation Intensifies

Thursday 05 September 2024 - 13:20

The investigation into the "Al Khair Group" fraud case is set to escalate as an investigative judge at the Tangier Court of First Instance schedules a hearing for Thursday. The case, which has seen a surge in complaints, has prompted the court to establish a special office to manage the influx of submissions. Hundreds of victims have been lured by promises of quick profits, only to find themselves ensnared in a sophisticated scam.

SNRT News recently spoke with Ridouane El-Saidaoui, a lawyer representing several victims, who revealed that the number of complaints had reached 1,000 by last Friday. These complaints have been filed by individuals both within and outside Morocco, who were deceived through a WhatsApp group. The group's leaders persuaded members to make financial contributions with the promise of substantial returns.

Currently, 11 individuals; 10 women and one man are under arrest. They are identified as either founders or key figures in the operation of the group. However, several other suspects have fled the country.

El-Saidaoui explained that the fraudulent scheme began in February 2022, initially created by three women. Despite the group's activities, complaints did not start coming in until last month. Over this period, the group employed various tactics and offers to persuade hundreds of people to join, with the prospect of easy and quick financial gains failing to raise suspicions among most.

The scam operated by requiring an initial membership fee starting at MAD 1,800 ($180). Participants were promised a return of MAD 10,000 ($1,000) after six months. To further entice participants, the group offered special "packs" where a contribution of around MAD 10,500 ($1,500) could yield a profit of MAD 300,000 ($30,000). The scheme was designed so that the larger the contribution, the bigger the promised return.

The success stories of early participants who received these exaggerated returns encouraged others to join, leading to a rapid increase in membership. The group also incentivized members who could not afford the full contribution by allowing them to make a single payment if they could recruit others to join. This approach led many individuals to bring in friends and family members.

Bank transfers were used to facilitate transactions, contributing to a sense of legitimacy, as many believed that the involvement of banks reduced the likelihood of fraud. Some transactions were also completed in cash.

The group's reach extended deep into families, with entire households being drawn in. El-Saidaoui noted that once one family member profited, they would often convince others to join, creating a ripple effect that spread to relatives and neighbors.

The scheme also ensnared employees and officials in Tangier and other cities, not just targeting the financially vulnerable. El-Saidaoui highlighted that some influential figures invested significant sums of money, often at the behest of family members who were directly in contact with the group's organizers.

Once the scam began to be exposed, the group was shut down and its leaders fled, leaving others behind who were subsequently arrested. Among those detained are several women who were active in recruiting victims.

El-Saidaoui urged the public to be cautious of such fraudulent schemes. He emphasizes that there is no such thing as quick, effortless profit, particularly when the promised returns are disproportionately high in a short period.

This was not the first scam of its kind in Morocco, as similar fraudulent schemes have emerged in the past. However, the scale and impact of the "Al Khair Group" scam appear to be unprecedented.