MCI, A Verdict of 10 years Imprisonment has been issued against Illegal Brokers, and Warning of the Temptation of Quick Profit and Money Laundering

10 May 2015
MCI warns citizens of falling victims to illegal commercial activities
As MCI continues to monitor the illegal commercial activities in various regions of the Kingdom, an initial verdict had been issued recently by the Public Court in Ula province for the imprisonment of ten years against those practicing illegal brokerage, which is considered a violation of the law and falls under the financial fraud. This comes as a result of the fruitful cooperation between the Ministry and the competent government agencies, especially the principality of Medina and the Bureau of Investigation and public Prosecution.
In this context, the Ministry warned all citizens of falling victims to all illegal commercial activities, as well as the temptations of quick profit, practiced by a number of scammers who use new patterns of fraud and manipulation, by claiming the ability of providing quick profit or cash flow in a short period of time. MCI calls on the public to report about the offenders and not to cooperate with them, indicating that such illegal practices may lead to money laundering, which is included under the Major Crimes as per His Highness the Minister of Interior decree No. (2000) dated 10 / 6/1435 AH.
 MCI pointed out that the vigilance of the concerned government agencies and the high awareness among all citizens and residents would limit and control the illegal practices, thus contributing to the strengthening of the national economy and protecting the public from falling victims to such deceptive practices, engaged in various types of fraud and cheating to delude clients of quick profit, which may end with the loss and stealing of their money, and the possibility of getting involved in money laundering operations without their knowledge.
MCI had earlier warned of the temptations of quick profit, where it organized awareness campaigns in various media including local newspapers and social networking sites, in order to warn all citizens of falling victims to the quick profit temptations.
The process of illegal brokerage can be defined as selling an item on credit for several months against a doubled price, where some traders or brokers intend buying cars from the public on credit, for a period not exceeding four months, and at the end of this period the whole amount should be paid, the purchase is done against double price of the car value and against a promissory note signed by the buyer. On the other hand, there are mediators ready to buy the said car at an auction among themselves, in cash with a lower price than the market value.
Meanwhile, MCI renewed its warning of all fraudulent practices, including the pyramid marketing and tippers manufacturing and then hiring them. MCI said that the pyramid marketing trade is banned in many countries of the world, this includes marketing and selling goods or services at high prices with the illusion to achieve big profits from the sale commission, which is done contrary to the Islamic Law, and in a misleading and fraudulent way. This activity is forbidden according to the decree of H.E. Minister of Commerce and Industry No. (91) dated 04/01/1434 AH.
The pyramid marketing trade is based on selling products or services to consumers, who do not need them, they buy such items for the sake of purchase only and in order to join the hierarchical chain, which carries out marketing and attract new victims in accordance with the hierarchical method banned internationally. The Ministry announced recently ceasing the activity of Q –Net Company, which is active in this field, and it is considered an extension of the previous companies, used to change their names from time to time, such as Business Company, Quest and Gold Quest.
Tippers Trading is one of the prohibited business activities. This trade is based on signing contracts for manufacturing the rear structure of a tipper against a value of SR 75,000 riyals, at the same time, signing rental fake contracts for a period of three years, with a guarantee represented in contracts, bills or checks without funds as a guarantee for the monthly payments.
It is worth mentioning that MCI had already suspended the trade activity of Multi Construction Company at the end of 2012, which was practicing fraud and manipulation on the citizens, through selling fake contracts to manufacture tippers rear structures against the amount of SR 75,000 riyals, promising a monthly profit of up to 4 thousand riyals, claiming the rental of the rear structures and giving them to a third party for operation process, all that is done without any taking over of the manufactured item or witnessing by the victim.
MCI calls on all citizens and residents to take caution and not to follow these deceptive practices, such as the illegal brokerage, the pyramid marketing, selling tippers rear structures or investing through suspicious investment websites and other fraud practices.
Last Modified 26 Dec 2018