By Hannah Marion Namukasa
As the Directorate of CID continues to investigate circumstances under which several victims were defrauded to a tune of Ugx 5 billion, by Capital Chicken Limited. The victims were offered profits as returns, through an online investment contract, at an attractive interest rate of 40 – 60%. The company is being investigated for operating a business of fund management without a licence, operating without an investment advisors licence and for obtaining money by False Pretence.
It’s against the above background that police through its spokesperson SCP Fred Enanga has cautioned the public about other Ponzi Companies in the market, some of which are under investigation by CID in coordination with the Capital Markets Authority.
The Ponzi companies include; Veta plan, Mall Fund, Great Wealth Youth Platform Africa, Cashmulla, Pio Crypto, Premium Clusters, Contract Kapital and Pacs Capital Limited among others.
“For instance, under Cashmulla, a user deposits Uganda shillings 17,000, and is encouraged to invite other users and earn a commission from users under them, which is a classic pyramid scheme tactic. The user cannot recover or withdraw their money.” Said Enanga
Enanga cautioned the public that this is another get-rich-quick pyramid scheme, with a potential of defrauding Ugandans. Year after, different pyramid scheme, change their company names during entry, then offer attractive packages or rewards after gaining numbers, they freeze the accounts and defraud the unsuspecting members of the public.
He thus urged the public to always carry out sufficient due diligence and only enroll in investment opportunities regulated by the Capital Markets Authority, or any other relevant regulator. In addition to seeking investment advice from licensed investment advisors, before making an investment decision and avoid being victims of investment fraud.
