Warning for schemers

By Rebecca Kuku
PEOPLE operating pyramid schemes have been warned that engaging in the illegal activity can attract fines of up to K1 million.
Investment Promotion Authority Register of Companies secretary Daphne Kroya said victims of such illegal schemes could also sue those managing them.
Bank of PNG Governor Loi Bakani yesterday called on the followers of such schemes to “stop giving money to the perpetrators”, and urged the police and law-enforcement agencies to act on the complaints lodged by followers of such schemes.
Kroya sounded the warning yesterday after a company registered with the IPA was alleged to be involved in a major money scam in the country.
The company has a Goroka postal address but its residential address and office base is in Lae, according to the IPA records.
It is alleged that the owner (named) of the company had lured people to buy shares in 2012 so that they can become beneficiaries of the “proceeds” of the sale overseas of a diamond and gold nuggets found in Eastern Highlands.
Since then, members have been contributing money to support the owner in bringing the “proceeds” to the country.
Kroya confirmed that the company was registered with IPA as a humanitarian aid company.
“The company has committed a very serious offence – if the allegations are true,” she said.
“It has registered itself as a humanitarian company and is practising a pyramid scheme that is ripping (off) people.”
She said if the allegations were proven to be true, all the directors of the company would be fined K10,000 each for every year the company had been operating.
“If they fail to pay the penalty fee, they will be taken to court and can be jailed for a number of years – depending on the number of years the company has operated and the nature of the illegal activities.”