After over 40 hours of consecutive trial sessions and deliberations, the Tangier Primary Court concluded one of the most significant fraud cases in Morocco’s history on Wednesday, sentencing the two principal defendants to five years in prison and fining them MAD 5,000 each.
Dubbed the “Al-Khair Group” case, the court issued a landmark ruling in a case that has gripped Moroccan public opinion for months and resulted in other members of the 23-person network also receiving sentences ranging from five years of imprisonment to suspended sentences of three months.
What began as a localized financial arrangement under the guise of the traditional Moroccan “daret” system quickly spiraled into a full-blown Ponzi scheme that defrauded over 1,000 individuals. Founded over five years ago by three women from northern Morocco, the Al-Khair Group expanded rapidly, creating sub-networks in various neighborhoods and cities, including among Moroccan communities in Europe.
Initially operating on a façade of trust and mutual benefit, the group lured thousands of participants, predominantly women, with promises of high investment returns. Over time, the scheme funneled billions of Moroccan dirhams into the personal accounts of its founders, the payouts being funded by the investments of new investors.
The illusion of legitimacy collapsed when one of the founders disappeared after withdrawing nearly MAD 8 billion. This revelation sparked widespread outrage, financial ruin, and legal action.
The unraveling began when a woman, the wife of a security officer, grew suspicious after failing to receive her promised payout of MAD 15,000. She set up what eventually became a sting operation, pretending to introduce high-paying members to one of the administrators, which led to a confrontation and the eventual arrest of the scheme’s leaders.
Investigations revealed an elaborate fraud network, with victims filing over 700 complaints. Many had lost their life savings, trusting friends and family who vouched for the group’s legitimacy.
The impact of the Al-Khair Group’s activities extended far beyond financial losses. Two local administrators reportedly committed suicide, overwhelmed by guilt and fear. Their tragic deaths underscored the far-reaching consequences of the fraud.
Victims described emotional devastation, with many unable to recover from losing their savings. The psychological toll on those affected continues to haunt Moroccan society, with this case standing as a stark reminder of the dangers of unchecked, nontransparent financial schemes.
The arrest of the president of the Al-Khair Group, identified only as Y.E.M., in September 2024 marked a pivotal moment in the investigation. She and her two principal accomplices, identified as K.E.G. and S.B.S., were charged with fraud, illegal financial activities, and unauthorized cryptocurrency transactions.
The court’s decision to impose heavy penalties reflects the severity of the crimes committed. Victims and their families, who followed the trial with anticipation, expressed a mixture of relief and lingering concerns about whether justice would extend to them recovering their lost funds.
The Al-Khair Group case highlights the vulnerabilities of informal financial systems and the urgent need for regulatory oversight. Authorities have pledged to pursue all individuals involved in the network while reinforcing efforts to protect citizens from similar schemes.
While the court’s ruling may bring closure to some, the broader societal scars from the Al-Khair fraud remain, serving as a cautionary tale for the Moroccan public about the risks of blind trust in unregulated financial ventures.