Moroccan Court Hands Down 71 Years in Prison in Massive Al Khair Pyramid Scheme

Doha – The Tangier Court of First Instance delivered its verdict early Wednesday morning in one of Morocco’s largest financial fraud cases, sentencing 25 defendants to a combined 71 years in prison for their roles in the “Al Khair Group” pyramid scheme.

The group allegedly collected over MAD 7 billion ($700 million) from victims across Morocco and abroad.

Following a marathon 45-hour court session, the two principal defendants were each sentenced to 5 years in prison and fined MAD 5,000.

The court found them guilty of fraud, illegal fundraising, and unauthorized distribution of aid aimed at exploiting vulnerable victims.

The defendant’s husbands were also involved in the case. Both husbands received identical sentences for their active participation in the fraudulent activities.

The scheme began in February 2022 when three women in Tangier established what they claimed was a legal enterprise called the Al Khair Group.

Operating primarily through WhatsApp groups, they initially targeted women in Tangier before expanding nationwide and internationally to reach Moroccan communities in Europe and North America.

The group’s operations started with promising investors a MAD 5,000 return on a MAD 1,000 investment, contingent on recruiting eight new subscribers.

As their operations grew, they increased the minimum investment to MAD 1,800, promising MAD 10,000 in returns within six months for recruiting five new members.

Eventually, they demanded MAD 12,600 with promises of MAD 30,000 returns for recruiting just two new members.

To establish credibility, the group showcased supposed humanitarian work, including mosque construction, well drilling in desert regions, and medical campaigns in remote areas.

They also circulated videos featuring “supervisors” and alleged beneficiaries praising the scheme’s quick returns.

The fraud unraveled in September 2023 when deposits reached MAD 720 million ($72 million), and tensions emerged among the leadership. Benefit payments abruptly ceased, leading to nearly 1,000 victims filing complaints.

The scandal resulted in numerous social tragedies, including one supervisor’s suicide and multiple families facing eviction after mortgaging their homes to invest.

After weeks as a fugitive, one of the defendants was arrested on September 22 at Tangier’s train station, accompanied by her husband and a taxi driver. The police had tracked her movements using advanced technical surveillance.

In addition to the main defendants, eight women received 4-year sentences, five others got 3-year terms, and one defendant received 2 years.

Three accomplices were sentenced to one year each, while one received three months in prison. Two defendants received three-month suspended sentences. Most convictions included MAD 5,000 fines.

Victims’ families welcomed the court’s decision, while defendants’ relatives announced their intention to appeal, arguing the sentences were excessive. The civil component of the case, involving hundreds of victims seeking compensation, remains pending.