A British businessman imprisoned for fraud in Dubai has accused the world’s oldest Islamic bank of seeking to “punish” him with another 20 years behind bars despite having completed his original sentence and being “close to destitute”.
Charles Ridley has been in custody for the past 14 years after he and fellow expat Ryan Cornelius were convicted for misusing a $501m (£370m) loan provided by Dubai Islamic Bank (DIB).
The 62-year-old has served his initial 10-year sentence but is now facing further imprisonment until 2038 after the bank claimed he still owed money and invoked a local law to detain him for another two decades.
The lender is demanding repayment of $431m in total, despite pleas from Ridley and Cornelius that they have no realistic way of doing this.
In a submission to the High Court, Ridley’s lawyers said that he and his family are “close to destitute” and that he is facing “harsh and unforgiving” conditions in Dubai’s Al Aweer central prison.
He is suing DIB over claims that its request to extend his jail term breached a settlement agreement that was previously signed by both parties.
The settlement is governed by English law.
Ridley’s lawyers said there was “no prospect” of him being able to repay the “impossibly large” sums and that under his new prison term he would not be released until he was nearly 80 years old.
“Mr Ridley’s position is desperate,” they added. “Despite having served the maximum sentence (and been held for a further period with no justification) he remains subject to harsh and unforgiving conditions.
“He has no funds to pay the substantial sums said to be owing and it is not seriously suggested that he will ever be able to repay the debts.
“He is therefore very much at the mercy of the bank who appear intent upon punishing him yet further rather than taking any steps towards meaningful recovery.”
The original $501m loan from DIB was provided to CCH, a trade finance company that Ridley and Cornelius were part of, before the financial crisis.
It was ostensibly for the construction of The Plantation, a proposed luxury polo-themed development that would have featured a hotel, clubhouses and a riding academy.
However, Dubai prosecutors later said it had been obtained using bribes and that the funds were misused for other purposes.
Ridley and Cornelius were arrested in 2008 and convicted for fraud three years later, with their case viewed as a landmark example of the politically-charged anti-corruption campaign the emirate launched in the wake of the financial crisis.
However, before his arrest Ridley had already admitted the misuse of funds to the bank and he and his associates struck a settlement to repay the money, a settlement that his High Court battle could now hinge on.
Under the terms of this 2007 settlement, Ridley and the others agreed to repay the $501m and pledged assets including The Plantation development site as collateral.
In exchange, the bank agreed to take no further action against them.
It seized control of The Plantation after Ridley and the others were detained.
Ridley’s lawyers do not deny his part in the original fraud.
But they say the bank breached its settlement commitments when it requested that his jail sentence be extended by another 20 years in 2018.
It did this under Dubai’s Law 37, which allows the indefinite imprisonment of criminals who owe outstanding sums to the state. DIB is part-owned by Dubai’s sovereign wealth fund.
But Ridley’s lawyers say the bank could secure his release at any time by fully informing the Dubai courts of the settlement, and that the lender owes him damages for years of wrongful imprisonment.
DIB, which is represented by US law firm Baker McKenzie, rejects the claims.
Speaking on Monday for the lender, Robert Anderson QC told the court there was no legal route for DIB to end Ridley’s jail sentence and that the matter should be dealt with by Dubai’s authorities anyway.
The trial, which is presided over by High Court judge Mr Justice Persey, continues.
