Pavel Burian posts - Czech Points

Pavel Burian

February 21, 2020 Celebrity

Police bust CZK 1 billion Ponzi scheme

Police bust CZK 1 billion Ponzi scheme - Czech Points

Police have charged three people with running a Ponzi scheme that defrauded investors over CZK 1 billion.

The suspects ran their Ponzi scheme under the name JO Investment. They offered stock investment services on global stock markets and promised sky-high returns. But instead of investing clients money, they used them to fund their lavish lifestyle. The group successfully conned over 2,000 people.

They reported fake investments to their victims on the stock exchanges in the USA, Europe, and Asia. Some investors received profit payouts of 30% to 100%, which was paid using capital from new clients. Clients who saw some success would unwittingly help recruit new victims.

Police seized property worth over CZK 1 billion, including gold bars, a Ferrari, and a BMW.

Credit: Blesk