Grenada Financial Crimes: Banking Industry Rocked by Massive Ponzi Scheme Exposed

A Shocking Expose Reveals Extent of Financial Crimes in Grenada’s Banking Industry

A recent court proceeding has shed light on the scale of financial crimes committed by a phony bank operating in Grenada, duping investors worldwide. The First International Bank of Grenada, which collapsed in 2000, promised astronomical returns of up to 300% using counterfeit documents and fake assets.

The Ponzi Scheme Unfolds

• The bank’s founder and officers used money scammed from unsuspecting original investors to simulate high returns.
• Most of the $170 million invested in the bank has disappeared, with some funds going back to investors as phony interest payments and others being squandered on lavish expenses.

Those Responsible Face Justice

Four bank officers have been found guilty and sentenced:

• One officer received an eight-year prison sentence and was ordered to pay over $32 million in restitution.
• The remaining three must pay more than $26 million in restitution in addition to serving prison sentences.

The Founder’s Fate

Gilbert Ziegler, the bank’s founder and a former mortgage banker, died in 2005 while awaiting trial. His death has not brought closure for victims who lost their investments.

A Warning from Financial Authorities

A spokesperson for the Financial Intelligence Bureau (FIB) has condemned the scheme as a “classic example” of financial crime, urging investors to exercise caution when presented with offers of short-term, high-return investments.

The Aftermath: Lost Funds and Regulatory Gaps

• Most of the money invested in the bank has disappeared.
• A complex web of fake banks and fraudulent financial instruments worth over $10 billion was uncovered by investigators, who took eight years to unravel the scheme.
• The involvement of Fidelity International Bank and 13 subsidiary banks highlights the need for increased vigilance and regulation in Grenada’s banking industry.