Massive Moroccan Real Estate Scam Defrauds 1,000 Investors of €57 Million

The case continues to make a lot of noise in Morocco and beyond, even if the current health crisis seems to have somewhat stifled it. The victims are as numerous among Moroccans living on the spot as those from abroad. Meticulous investigations have made it possible to get hold of the group’s boss, Mohamed El Ouardi, "accused of having cashed checks for projects sold on plan, without owning the land or the permits, in full view of everyone".

Summoned to parliament to explain how such a thing could have happened in a country of law, the head of government, Saad-Eddine El Othmani, exonerated the Executive, to the great displeasure of the victims who turned to King Mohammed VI, "the only one capable of rescuing them". According to the lawyer for the victims, more than 600 million dirhams (or 57 million euros) would have been misappropriated by the developer who "cashed advances of 20 to 100%". But by what magic, this "money has disappeared", specifies the newspaper.

The testimonies of the victims are legion. Houria, 49, talks about "very persuasive salespeople" who convinced her not to miss "a golden opportunity". She will leave 400,000 dirhams, the equivalent of more than 35,000 euros, representing 20% of the final price of her villa which, unfortunately, she will never see. As for Sifeddine, he is a thirty-year-old entrepreneur, based in Argentina. On the strength of a brochure that let him glimpse the house of his dreams for his old age, he booked an apartment. "The advertising, broadcast in prime time on public television with famous Moroccan actors, had reassured him".

The victims also denounce the corruption that reigns in the country. "Developers work hand in hand with elected officials and, often, the elected officials themselves become real estate developers," says a Moroccan architect who requested anonymity. The Minister of Urban Planning and Housing, Nezha Bouchareb, aware of the seriousness of the situation, said that there are "a number of dysfunctions and illegal practices that will have to be corrected".

But in the meantime, El Ouardi has been detained, with six alleged accomplices: the notary, his financial director and salespeople. The facts have been requalified, going from offenses to crimes. They risk up to 20 years in prison.