Sean Douglas
PONZI schemes are now illegal in TT due to recent changes in the law, said the TT Securities Exchange Commission (TTSEC) in a recent statement.
Named after Italian swindler Charles Ponzi (1882-1949) who operated in the US and Canada, a Ponzi scheme pays investors in a non-existent enterprise merely by funds from new investors rather than profits generated by productive business activity.
The TTSEC announced certain amendments to the Securities Act, (done under the Finance Bill (No 2) 2021.)
“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.
“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 ten years.
In addition, the act says 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.”
The TTSEC asked members of…
