As it continues a probe into what is believed to be a huge Ponzi scheme affecting thousands, the Guyana Police Force (GPF) has issued a public appeal for persons who invested with Accelerated Capital Firm Inc (ACFI) to make contact with the Criminal Investigation Department (CID).
Its appeal came after the principals in the firm, Yuri Garcia Dominguez and Ateeka Ishmael, were taken into custody on Thursday for questioning amid growing complaints from persons who had subscribed to the scheme.
According to Crime Chief Wendell Blanhum approximately six persons have filed official complaints against the two and several others have indicated an intention to do so.
Anyone else affected is asked to reach out to the police via telephone numbers 225-8196 and 225-0575.
A statement from the GPF said that Dominguez, a 34-year-old Cuban national, and 32 year old Ateeka Ishmael both of Track A, Coldingen, East Coast Demerara, were detained on Thursday as part of an ongoing investigation of alleged fraud.
They have been accused of operating a “pyramid” scheme with approximately 17,000 Guyanese having lost hundreds of millions of dollars after investing with the unlicensed company.
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 and wire transfers.
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 were 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 to be able to “invest” the $300,000. Others, according to reliable sources, were able to convince relatives in the United States to also invest 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 “compensation” to those affected by this delay and urged them to make contact with the compliance department to schedule an appointment.
According to Attorney General, Anil Nandlall after making a post about the company on Facebook he received hundreds of messages from members of the public and reached out to the Guyana Securities Council (GSC) for an explanation of the operation of the company.
In response, head of the GSC Cheryl Ibbot 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 the Presidency, Citizenship and Public Security that Dominguez and Ishmael were suspected of operating an illegal investment (pyramid scheme).
At the same time, the GSC published public notices on the issue. Notices were also published in 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 informing the firm 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 wrote.
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 their 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 GSC and was 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 requested documents have not been provided.
The Government on Thursday assembled a high-level team headed by the Attorney General and Minister of Legal Affairs, the Commissioner of Police, the Governor of the Central Bank, the Head of the Financial Intelligence Unit and the Head of the Guyana Securities Council to immediately investigate the operations of ACFI, with a view, inter alia, of reimbursing monies to the persons who “invested” in the scheme.
