Katie Price's husband Lee Andrews allegedly took £5,000 from a "desperate" woman in Dubai while promising to arrange a property investment visa for her.
The woman claims Andrews assured her he had friends in the Dubai government who could arrange the visa she required "through the back door".
But she says the requested via never materialised and she is still waiting for answers, The Sun reports.
The woman's friend Daniel told the newspaper: "My friend is too scared to speak out for fear of reprisals, but I wanted to tell people what Lee has done.
“He took her money and promised he could help her get a property investor visa – then nothing came of it."
Andrews is a self-proclaimed businessman and he and Price married in January days after meeting.
Within months, Andrews vanished and claimed to have been kidnapped, only for it to emerge he had been held in a jail cell on reported fraud allegations.
He has since been released. He has always denied any wrongdoing and allegations he is a conman.
The woman he allegedly scammed is Iranian and reportedly met Andrews in a hotel lobby, where they struck up a conversation.
She told Andrews how she was seeking a property investment visa, with hopes that it could make it easier in future to apply for a residency visa.
Daniel says she was "fraught" and "vulnerable" at the time she met Andrews, and that she "probably wasn't thinking straight" when she handed over the money.
Daniel added he later bumped into Andrews while staying in the hotel and confronted him about the woman's money.
He says Andrews was "charming" and "tries to butter you up", but could not say where the woman's money was.
He added: “It’s not even about the money anymore. It’s about stopping somebody else ending up in the same situation.”
It comes weeks after a US businesswoman Crystal Janke alleged she gave £123,000 to invest in one of Andrew's schemes only to be left with nothing.
Andrews was released from prison in Dubai earlier this month after being arrested on reported fraud charges
Katie Price yesterday admitted her marriage to Lee Andrews is “f**ked up” after he made a series of bizarre claims about her children.
Andrews said he has adopted her kids and claimed they are trying to have a baby together.
The Standard has tried to contact Andrews and Price for comment.