Is it permissible, Islamically, to claim compensation for the period of harm that befell me from a person to whom I entrusted my money to trade with, but he handed it over to another fraudulent person, which led to the loss of part of the capital, deprived me of the agreed-upon profits, and caused me financial and psychological distress?

Your partner is fully liable for the entire sum of money, both the principal and your share of the profit, because he transgressed by depositing it with someone you warned him about. He, in turn, should claim the money from the person with whom he deposited it.

Regarding damages: - Moral damages: The preponderant opinion is that it is not permissible to take compensation for them. - Material damages: If they are due to your partner's procrastination, you have the right to claim what you spent to recover your money, because a procrastinator is an oppressor. As for one who is in financial difficulty, he must be given time until he finds ease.