Suspect on trial for forged contracts and insurance fraud

TDT | Manama

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A suspect has been referred to trial for allegedly forging employment contracts and unlawfully appropriating insurance funds disbursed by the Social Insurance Organisation (SIO), as well as laundering those funds. This was announced by the Deputy Head of the Financial Crimes and Money Laundering Prosecution.

The trial is scheduled to begin on 10 September 2024, at the High Criminal Court. The Public Prosecution received a report from the SIO indicating that the suspect had managed to embezzle a total of BD109,798 from the organisation after submitting forged employment contracts. 

Investigation

Upon receiving the report, the Public Prosecution immediately launched an investigation. Evidence gathered from witness testimonies, documents, and investigations conducted by the Anti-Corruption Crime Directorate revealed that the suspect accessed the organisation’s electronic system, submitting a request containing fraudulent employment contracts and incorrect information regarding insurance for workers.

He falsely claimed they were employed by a company owned by his father, to benefit from social insurance advantages.

Requests

After his request was accepted, the suspect submitted additional requests to remove these workers from insurance, citing their resignation on various dates to claim the corresponding compensation. Subsequently, the funds were transferred to bank accounts in the names of the insured individuals and other accounts that the suspect controlled.

Financial analysis confirmed that the suspect was the ultimate beneficiary of the funds deposited by the SIO. He engaged in laundering activities, involving bank transfers aimed at concealing the source of the funds and legitimising them.