Look alike Ponzi could be in Moratorium

The report by the Companies Office opens the lid on the finance industry. The validity of the report opens a floodgate.

The report states “It is our understanding a number of failed finance Companies were in the end acting in a similar way to Ponzi schemes”

This is a serious finding and EUFA are calling on the Government to take immediate action due the fact that many troubled finance companies are in Moratorium. If any of the companies in moratorium are in fact acting in a similar way to Ponzi schemes” crimes may be being committed.

IF the companies office is correct Either the finance companies business model was setup originally as a similar scheme to a Ponzi scheme OR it changed to that during its lifetime. Either way it suggests a deliberate attempt to deceive occurred.

Charles Ponzi was a criminal and went to jail. He was charged with 86 counts of mail fraud.

Coordinator of EUFA said today “If the model was set up to “ act in a similar manner to Ponzi schemes” then that’s a serious indictment all parties involved in allowing this industry to operate in this manner.