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Houthi-Run Fake Companies Swindle Yemenis out of Their Money

Houthi-Run Fake Companies Swindle Yemenis out of Their Money

Sunday, 12 July, 2020 - 08:30
A man wearing a protective mask walks on a street during a 24-hour curfew amid concerns about the spread of the coronavirus, in Sanaa, Yemen May 6, 2020. (Reuters)
Sanaa – Asharq Al-Awsat

Dozens of economic and commercial fake companies in Yemen, run by the Iran-backed Houthi militias, are expanding their fraud operations to strip Yemenis of their money under the pretense of collecting investments.


Local sources based in Sanaa confirmed to Asharq Al-Awsat that Houthi leaderships are running fraudulent companies in Sanaa, Ibb, Dhamar, Umran and other areas under their control.


Sources emphasized that those companies are still working according to systematic methods to steal large amounts of money from deluded citizens. These companies are claiming to make investors shareholders in companies with the promise of reaping profit off their investment.


Over 12 fake companies are being run by Houthis in areas of their control, sources said.


At the start, these companies run astronomical profits to encourage investors to invest more and to lure in new victims.


Zaid. A. is a Sanaa citizen and a recent victim of the ploy played out by these fake companies.


Zaid, 35, had sold his motorbike with the dream of investing in those companies and turning a decent profit for him and his family.


“After hearing from my friends about the astronomical profits being turned in by these companies, I rushed to sell my motorbike hoping to use the money to invest and expand my income,” he told Asharq Al-Awsat.


“After giving the money to one of the company’s brokers, I was told to wait a week before any profit comes in. After the week was over, both the company’s office and broker had disappeared,” Zheaid added, concluding that he was conned out of his money.


Like Zaid, many Yemeni women and men had paid a hefty price for quickly trusting the Houthi-backed con artists.


Local sources warn that the number of these fake companies is on the rise, with them securing different titles and addresses to swindle people out of their savings.


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