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Rabat– The Tangier Court of First Instance has mandated the restitution of millions of dirhams to nearly 1,000 victims defrauded by the “Al Khair Group,” a pyramid scheme that has devastated countless families. This decision follows prison sentences totaling 71 years for 25 individuals involved in orchestrating the fraudulent operation.
The court’s restitution list, submitted to its registry, outlines the amounts to be repaid, reflecting the victims’ individual contributions. Initial figures listed 791 victims, with an additional 200 names added later. Compensation orders range from MAD 10,000 to MAD 500,000 ($1,000 to $50,000), with the court also awarding victims 10% of their losses as additional compensation.
According to SNRTNews, Radwan Al-Sidawi, a lawyer representing some of the victims, described the ruling as a step toward justice, but noted that many victims plan to appeal in hopes of securing greater compensation for their financial and emotional damages.
The scheme operated primarily through WhatsApp groups, beginning in February 2022 when three women in Tangier claimed to establish a legal enterprise called the “Al Khair Group.” Initially targeting women in Tangier, the network rapidly expanded nationwide and internationally, reaching Moroccan communities in Europe and North America.
The group initially attracted investors by promising a return of MAD 5,000 ($500) on a MAD 1,000 ($100) investment, provided they recruited eight new subscribers.
As their operations expanded, the minimum investment was raised to MAD 1,800 ($180), with a promise of MAD 10,000 ($1,000) in returns within six months for recruiting five new members.
Over time, they required an investment of MAD 12,600 ($1,260), promising returns of MAD 30,000 ($3,000) for recruiting just two new members.
By September 2023, deposits had surged to MAD 720 million ($72 million). However, internal tensions among the group’s leadership and the abrupt cessation of promised benefit payments led to widespread panic and nearly 1,000 complaints.
The fallout included social tragedies, such as the suicide of one supervisor and multiple families losing their homes after mortgaging properties to participate in the scheme.
The court found the defendants guilty of multiple charges, including fraud, breach of trust, and illegal solicitation of public funds. Among the sentenced were the group’s president, director, and three female administrators, each receiving five-year prison terms. Other participants received sentences ranging from three months to four years, depending on their roles in the operation.
