Ponzi and pyramid-type schemes are now outlawed.
If found guilty, you will have to pay millions in fines and serve jail time.
The Trinidad and Tobago Securities and Exchange Commission (TTSE) yesterday advised the public of an amendment to the Securities Act Chapter 83:02 (“the Act”) of the Laws of the Republic of Trinidad and Tobago.
A new Section 165A has been inserted after the existing Section 165 of the Act to provide for the criminalising of any ‘prohibited schemes’, namely Ponzi and pyramid-type schemes, the TTSE said on a media release.
Under the amended Act, it is now a criminal offence to establish, operate, advertise or participate in these prohibited schemes. It is now also an offence to invite persons to join a prohibited scheme.
The Act further provides that a person who establishes or operates a prohibited scheme is liable, if convicted, to pay a fine of $10 million or to imprisonment for 10 years.
It also states that a person who knowingly participates in a prohibited scheme is liable, if convicted, to pay $5 million or to imprisonment for five years.
For knowingly advertising or inviting another person to join a prohibited scheme a person is liable, if convicted, to pay $2 million or to imprisonment for three years.
Members of the public, who may have information about the operation of a prohibited scheme, are urged to…
