Scam claims

THE owner of a local coffee company is alleged to be behind a major money scam involving about 5,000 members, including children.
It is alleged the businessman lured the members to pay K50 each in 2012 (raising about K250,000 from membership) and become beneficiaries of the proceeds from the sale of a rare diamond and gold nuggets found in Eastern Highlands.
Three disgruntled members revealed the alleged scam to The National and complained bitterly that they were waiting for their lucrative payouts for the last five years.
They produced their membership ID cards, which showed the company name and photograph of the owner as well as receipts of their fees.
Two other ID cards of child members were also produced.
The company is registered with the Investment Promotion Authority (IPA) and has a Goroka postal address.
One of the members, who spoke on the condition of anonymity and referred to as source one, said the company owner currently resided with his three wives and children in the National Capital District.
Some members lived in tents in the same area.
Source one said the company owner had told them that he had found a big rare diamond and gold nuggets in his garden in Okapa, Eastern Highlands, and would share the sale proceeds with people who paid K50 each to become members of his enterprise.
“This diamond and gold nuggets were taken by his expatriate friend to Israel to be sold but his friend was not able to bring the money back because it was too big.”
Source one said they had paid their membership fees in 2012 and contributed money weekly.
“He told us that the money was too big and could not be wired or transferred and a plane would be bringing the money in March.
“But March is gone and for five years, we have wasted our money.”
The National made several attempts to contact the company owner without success.
Meanwhile, NCD Met Supt Benjamin Turi said police could not take action against the ring leaders of such money scams unless formal complaints were laid.