Fraudulent Investment Schemes suspected in Belize

Plus news has received several reports of a potential pyramid scheme occurring in the country of Belize; beginning somewhere in the north and making its way to the cayes and other parts of the country. According to the reports we have heard, the scheme targets women who are approached to make an “investment” of  $2,300.00 with the promise of a return of  $28,000 . The thing is, each woman has to also bring in 8 other women willing to invest. What exactly they are “investing” in is not clear, only the promise of a great return. It is typically how a pyramid scheme operates where those who started the scheme cream off, and those on the next few levels of the pyramid also get the promised amount. However, as the base grows and no more persons are able or willing to join the scheme, the entire pyramid crumbles, leaving many people with $0 for their “investment”. The Financial Intelligence Unit of Belize has also been alerted of the “investment” opportunity that many in Belize have already joined.   According to a statement from the FIU office, It has come to the attention of the FIU that one or more fraudulent investment schemes may be operation in Belize. In a typical scheme, the promoter(s) induce persons to invest small sums of money in the scheme by promising them a substantial return in a very short time. Potential victims are often encouraged, or required, to bring their friends into the scheme as well. The promoter(s) may host social events and publicly give money to early “Investors” to demonstrate that persons are being paid their return. However, in these schemes, no actual investment is made. Any payout is made from money contributed by later victims. These schemes crumble when the promoter(s) or “investors” cannot induce enough victims to pay into the scheme to cover all the promised returns. The higher the promised return, the faster the scheme falls apart. The general public is urged to exercise the following measures; 1. Be cautious of investment opportunities that offer extraordinary rates of return on your investment. 2 Be cautious of investment opportunities that require you to recruit subsequent investors to increase your profit or recoup your initial investment. 3 Independently verify the legitimacy of any franchise or investment or consult an unbiased third part before you invest. Report any suspected case of fraud to your nearest Police Station.”

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