Grand Court of the Cayman Islands Issues Interim Award in Algosaibi Fraud Case and Orders Maan Al Sanea to Pay $2.5 billion

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Grand Court of the Cayman Islands Issues

Interim Award in Algosaibi Fraud Case and

Orders Maan Al Sanea to Pay $2.5 billion

PR Newswire

WASHINGTON, June 14, 2012

WASHINGTON

,

June 14, 2012

/PRNewswire/ -- The Grand Court of the

Cayman

Islands

issued a ruling in favor of Ahmad Hamad Algosaibi & Brothers (AHAB)

requiring Maan Al Sanea to pay AHAB

2.5 Billion dollars

, the amount requested

by AHAB as an interim payment. In a 35-page ruling the Chief Justice found

that AHAB would be entitled to recover at least 2.5B.

The Court's award was based on what it termed "compelling" evidence of "a

pattern of massive payments to [Al Sanea's] Saad Group (at times running at

an average of well over

$1 million

per day)."

The Court found these payments,

which were directed by Al-Sanea, to be "inexplicable having regard to the

nature of AHAB's business" and declared that AHAB's allegations that Al-Sanea

misappropriated billions of dollars were "now deemed proven against Mr. Al

Sanea."

The ruling is a significant development in AHAB's recovery efforts against Maan

Al Sanea, who is also currently being charged with financial crimes in

Bahrain

in

relation to his massive fraud and is under investigation in

Switzerland

and

the

United States

.

The ruling follows a default judgment entered against Al Sanea in

November

2011

. Under

Cayman Islands

procedure, the holder of default judgment may

apply for an enforceable interim order for "a reasonable proportion of the

damages which in the opinion of the Court are likely to be recovered."

The ruling was based on the court's detailed review of the affidavit evidence of

Simon Charlton, the Deloitte partner who led the forensic investigation. The

ruling found that the specific forensic evidence of payments made from AHAB

to Mr. Al Sanea and companies under his control "remains unchallenged." AHAB

told the Court that it will undertake final quantification of their losses at the end

of the case against Mr. Al Sanea and other parties on their claim.

Although Mr. Al Sanea has repeatedly issued public statements denying AHAB's

charges, he declined to submit any defense to AHAB's claims in the Cayman

Court. Instead, he unsuccessfully disputed the Cayman court's jurisdiction,

losing in both the

Cayman Islands

Court of Appeal and Her Majesty's Privy

Council in

London

, the final appellate court.

"Maan Al Sanea has repeatedly said he is waiting for his day in court to defend

the charges against him. Clearly, he has not and cannot," said Eric Lewis,

AHAB's chief legal coordinator. "AHAB's forensic team provided compelling

affidavit evidence of misappropriation. Mr. Al Sanea cannot defend the fraud

charges on the merits and the court has acted accordingly. AHAB has

requested at this juncture an order for

$2.5 billion

to enable early action to be

taken, but expects a significantly larger final award when this case is ultimately

tried."