The Guyana Police Force (GPF) has detained two persons for the alleged operation of a “pyramid” scheme while a newly formed high-level team seeks to adopt a multi-sector approach with a view, of reimbursing monies to the persons who “invested” with The Accelerated Capital Firm Incorporated (ACFI).
Crime Chief Wendell Blanhum confirmed to Stabroek News that Ateeka Ishmael and Yuri Garcia Dominguez were detained by ranks from the fraud unit just after 6 pm last evening and were up to press time still in custody at the Criminal Investigation Department (CID) where they are assisting with the investigation.
The Police today issued a statement asking persons who may have invested with the Company to make urgent contact with CID HQ on telephone numbers #225-8196 and 225-0575.
According to a release yesterday from Attorney General Anil Nandlall, approximately 17,000 Guyanese have lost hundreds of millions of dollars after investing with the unlicensed company.
Nandlall explained that after making a post about the company on Facebook he received hundreds of message from members of the public and reached out to the Guyana Securities Council (GSC) for an explanation of the operation of the company.
At a meeting convened on the matter, head of the GSC Cheryl Ibbot reportedly presented documents showing that ACFI has been operating since 2018 in violation of “several pieces of legislation across the fiscal regulatory architecture.” The entity also presented evidence that in October 2019 it had informed the former administration through the Ministries of Presidency, Citizenship and Public Security that Dominguez and Ishmael were suspected of operating an illegal investment (pyramid scheme).
Letters were reportedly written to Ministers Winston Felix and Khemraj Ramjattan after it was publicly indicated that Dominguez, a Cuban national, had applied to the Minister of Citizenship for naturalization in Guyana.
The notices published to in local newspapers invited persons who knew of any reason why naturalization should not be granted to contact the Ministry of the Presidency, however the communication from the GSC was not acknowledged and Dominguez received citizenship. He currently holds a Guyanese passport which was issued in 2020.
The release explained that a high-level team headed by Nandlall and including the Commissioner of Police, the Governor of the Central Bank, the Head of the Financial Intelligence Unit and Head of the Guyana Securities Council has now been formed to immediately investigate the issue.
ACFI has claimed that it uses a foreign exchange platform to trade and it seems that all aspects of the scheme operate online via training webinars, WhatsApp and emails. The methods of payment used to invest and trade are credit cards or by wire transfer.
Circle
Stabroek News has learnt that individuals were invited to invest $300,000 to join a “circle” and then invite others so that their “circle” could extend to eight or more persons after which they would receive a percentage of their investment.
Specifically investors are told that they will receive 50% of their initial deposit one month from the date of that deposit. An investor is also afforded an opportunity to earn commissions and profits if they invite new members.
The payment plan states that for every person recruited the investor will earn 10% of the amount invested by that person within five business days of their deposit. Any investor who recruits three additional persons gets an additional 10% monthly lifetime payment.
Many including domestic workers are said to have liquidated their assets including their homes and family properties to be able to “invest” the 300,000. Others, according to reliable sources were able to convince relatives in the United States to also investment with them to the tune of millions of Guyana dollars.
Many were reported to have received payments but these stopped three months ago. A statement on ACFI’s Facebook page has promised those affected by this delay “compensation” and urged then to make contact with the compliance department to schedule an appointment.
Another statement yesterday indicated that the number of the compliance department was not functioning as a result of a city fire.
Accounts
The release from the AG’s office goes on to note that local banks have terminated the accounts of Ishmael and Dominguez, and refused their request to open a corporate account as a result of the public notice by GSC which appeared in the print media in October 2019 and January 2020.
Following these notices attorneys representing ACFI wrote to the GSC requesting an apology and explanation. This explanation was provided on July 20, 2020 with GSC noting that there were in possession of an agreement between the firm and one of its client which declared that ACFI “operates in the foreign exchange market with the fund deposited thereon by the investor.”
Since the agreement further declared that ‘the company declares that operates through brokerage houses regulated by the law of the country in which they are established’ the GSC informed that it has no records that disclose any approval being granted to ACFI to operate as a broker.
“The terms of the agreement actually disclose that ACFI is engaged in the business of effecting transactions in securities for the account of others and consequently has breached the terms of the Securities Industry Act 1998,” GSC is said to have written.
In addition to being unlicensed, ACFI is accused of violating the Anti-Money Laundering and Countering the Financing of Terrorism Act which requires all investors to provide the source of funds and ensure that the financial activities and money laundering risks associated with a customer are properly recorded.
In response, ACFI on August 5, 2020, applied to be registered as an ‘Investment Broker’ and Securities Company with the Guyana Securities Council and were advised that certain documents needed to be submitted on or before August, 14. They were also informed that under the Securities Industry Act 1998 and Regulations thereto, ‘investment broker’ is not a listed category.
The firm has been asked to submit a detailed Curriculum Vitae of both Dominguez and Ishmael along with copies of academic certificates, detailed Business Plan and Structure of the Organization, contact number and email address for ‘Financial Market Relations Regulation Center’, copy of existing Franchise Agreement, copy of company by-laws, completed fit and proper questionnaires with police clearance certificates and the name of the Company’s Banker.
They were also informed that every securities company registered shall obtain indemnity insurance and that a minimum paid up capital of $200 million dollars is required.
This information has not been submitted.
Meanwhile the GSC also wrote to Dominguez asking him to cease and desist from advising the clients of the firm that the reason for non-payment to their clients is that the GSC is in the process of granting a licence to ACFI.