It is emerging that investors worldwide have lost billions of dollars from clever, sometime powerful and well connected individuals. Stories are narrated daily of families that have sold off their assets in the hope that they will reap super profits in this schemes. And you would not blame them for am yet to meet a person who won’t want to attain financial freedom, especially during this prevailing economic crunch. What really is shameful is that governments that should have been alert to prevent these fraudsters from fleecing innocent citizens seem to be ill-equipped or ignorant as the swindlers go about their business.
We have heard governments warning their citizens against investing in the schemes saying they would eventually collapse. But what fails logic is why these same governments which house the machinery to act against the perpetrators are silent. Yet the law stipulates that only licensed institutions should collect money from the public. Even more agonizing is that charges have been dropped against key suspects who go ahead to court to have their frozen accounts lifted. In short to say that investor may not get back their money. These could also mean that behind these schemes are prominent individuals who are politically connected.
Which bring me to say that the laws of a country should not be static and must be reviewed to deal with emerging challenges, such as ponzi schemes. What a sad day when such scams take place rendering families destitute. As much as there are many reasons why a sane person would be lured into sinking his/her life savings in a suicidal undertaking, it is about time we wake up to reality that there no short cuts to making wealth. Greed will very often lead to distress and financial downfall. Let us think hard and long before we plunge into any business venture by consulting widely and acquiring relevant knowledge. There are certainly a wide range of sound investments options out there apart from pyramid schemes.
Governments should know that pyramid schemes are a threat to the economy of their countries and also a threat to national security. We do not forget the riots that took place in Albania when almost half the population signed up in a pyramid scheme which collapsed and more than 2000 people died. It’s therefore imperative that governments put effective systems to ensure swindlers are discouraged from cheating the public from their life savings. Apart from just making sure those that have been apprehended are prosecuted, the victims of such schemes should speedily recover their investments.