Oman says uncovers US$220 mln investment fraud

* username: rupertbu

Thousands of investors have been swindled out of a total of 88 million rials (US$220 million), Oman's prosecutor's office said on Wednesday, in what one analyst said could be the Gulf Arab countries biggest securities portfolio fraud.

"So far, as many as 3,254 people fell prey to the swindlers and the total amount swindled by the cheats so far stands at 88.4 million rials," the public prosecutor's office said in a statement.

The statement said five of seven people suspected of involvement in the securities portfolio fraud were in custody while two were still at large. It did not name the suspects.