Armenia: 11 Suspects Charged in Alleged $Million-Dollar Ponzi and Pyramid Scheme - Onyxum
Eleven Individuals Charged for Alleged Involvement in Ponzi and Pyramid Scheme in Armenia
The Armenian Investigative Committee announced on January 12, that eleven individuals were officially charged for their alleged involvement in a multimillion-dollar Ponzi and pyramid scheme that was operating in Armenia from 2016 1. Some of the suspects are Armenian nationals, while others are Iranian and Canadian citizens.
Operation VODA
The suspects reportedly started operating the illegal scheme in 2013 under the name VODA with a focus on recruiting new members and assets by promising phased business training courses 1. They created online platforms voda.net and vodanet.ioand instructed participants to book counterfeit hotel package bookings, ranging from $450 to $21,000, to join VODA as a legitimate international company.
Discovery and Regrouping
Iranian law enforcement agencies uncovered the initial criminal case in June 2018, leading to the ceasing of Vodanet British LTD’s operations, the closure of its websites, and the disbanding of the fraudulent structure. However, some members of the scheme regrouped and established Onyxum in Canada, launched an Onyxum.com website, recruited the top coordinators from Vodanet British LTD, and returned to Armenia to lure more citizens under false promises 1.
Expansion and Recruitment
Onyxum opened several offices in Yerevan and across the country, aiming to attract more investors by convincing them they could generate profits as long as they recruited new members to the company 1.
Warnings and Consequences
Armenian authorities are currently working diligently to uncover all potential suspects involved in the Ponzi and pyramid scheme and strongly advise against using the Onyxum.com website or dealing with Onyxum’s offices 1.
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“The alleged criminal organization’s activities have resulted in significant damage and financial losses to numerous innocent individuals. We take these cases seriously, and our priority is to protect the public from such deceitful and immoral practices,” said Davit Sasunyants, Spokesperson of the Armenian Investigative Committee 1.