$9B fraud case to stay in CI

(CNS): The Cayman Islands Court of Appeal has directed that the multi-billion dollar fraud claim brought by Ahmad Hamad Algosaibi Brothers (AHAB) against Maan Al Sanea, an insider who has been alleged to have misappropriated more than $9 billion, should be tried in the Cayman Islands. Previously, the Grand Court had stopped proceedings in the case suggesting that parts of it might be more suitably tried in Saudi Arabia.Following the CICA decision this week the stay in the case is now lifted and the claim can now proceed to judgment in Cayman.

In delivering the judgment, Sir John Chadwick, President of the Court of Appeal, rejected Al Sanea’s claims that there was no jurisdiction over him and that he was not properly served. The Court also held that the $9.2 billion worldwide freezing order of Al Sanea’s assets should remain in place until trial.

With respect to trying the claims against Al Sanea in Saudi Arabia, Sir John Chadwick, said, "Nor was it possible to be confident that proceedings commenced in the Saudi Courts would lead to a decision determinative of AHAB’s claims against Mr. Al Sanea within any measurable period, if at all."

The Court characterized AHAB’s forgery claims against Al Sanea as "serious."
Al Sanea now has a technical right of appeal to the Privy Council in London, but that appeal is discretionary.

The Cayman Island Court of Appeal also dismissed a finding of contempt against Al Sanea by the Chief Justice on technical grounds regarding the nature of service of the contempt application and also found that the grand court did not adequately state its reasons for its finding of proof of wrongdoing "beyond a reasonable doubt."