“You may be committing a criminal offence…” the words of Commissioner of Police, Travor Botting, speaking in relation to what the Financial Services Commission (FSC) has called unregulated money schemes or ponzi schemes.
Over the past year several of these unregulated money schemes have gained increasing popularity within many social circles in the TCI, particularly as persons have come to feel the crunch of the COVID pandemic on their finances. With names such as the Lotus, the Flower and the Circle, these schemes have attracted many persons in the TCI community, believing that they are a quick and easy way to make money. However, many residents have been left high and dry after losing their money.
The FSC recently issued a press statement on its website warning residents of these schemes, which promise upwards of $10,000 dollars in a month. RTC News has been told that some persons participating in these schemes have made as much as $50,000, while others have lost around $2,000 or maybe even more.
The schemes usually work by having two persons create a pot or fund with money and then they have to find other persons to add money to that pot, and those new persons have to each find other new persons, creating several levels. The person at the highest level takes the pot and more participants are needed to keep the payments going. An arrangement that the FSC says is unsustainable, fraudulent, and structured like a Ponzi Scheme, leaving unsuspecting participants tricked out of their cash.
Commissioner Botting says that he is aware of the social media posts regarding these Ponzi or Circle Schemes being run in the TCI and he wants to remind those engaged in these schemes or attracted to such systems that Ponzi Schemes and other similar activities are illegal, and those involved may be subject to criminal charges. Botting says that the RTCIPF will be working closely with the FSC to respond to complaints about these schemes.
The Commissioner says that he would discourage all persons involved in these schemes or those considering investing money into them from engaging in this activity, as you may be committing a criminal offence and you are likely not to get your money back. He went on to say that the RTCIPF will investigate complaints but, as it stands, no direct complaints have been made to the Force.
You can contact the RTCIPF Financial Crimes Unit by email at fcu@tcipolice.tc if you wish to make a complaint or if you have any information as to the criminal conduct of others.
