Malta Police Collaborate with European Authorities in Ponzi Scheme Bust
Massive International Operation Leads to Arrests and Seizures
A massive international operation has led to the arrest of nine suspects behind a multi-million euro Ponzi scheme that swindled hundreds of investors, including many from Malta. The scheme, known as Juicy Fields, promised hefty returns on investments related to medicinal cannabis, but was actually an elaborate scam.
Operation Details
- On April 11, police across Europe executed 38 house searches and confiscated:
- €4.7 million in bank accounts
- €1.5 million in cryptocurrencies
- €106,000 in cash
- €2.6 million in real estate assets
- Several luxury vehicles, works of art, and other valuable items
Background on the Scheme
MaltaToday was first to break the news of the scheme’s collapse in 2022, revealing how many Maltese investors had lost thousands of euros after the platform stopped operating. Victims who spoke to this newspaper claimed they were promised massive returns on their investments, but instead saw their savings disappear.
Estimated Damages
Europol estimates that the total damages from the scam amount to a staggering €645 million, with actual and unreported damages potentially much higher. The scheme is believed to have affected around 550,000 participants worldwide, with most being European citizens.
Key Figure Linked to the Scheme
One of the key figures behind the scheme was Daniel Gauci, who was based in Malta and served as Juicy Fields’ chief business development officer. Despite proclaiming his innocence, Gauci has been linked to the scam, which is believed to have been perpetrated by Juicy Field’s ultimate beneficial owners, who are said to be Russian and Colombian.
Investigation and Arrests
The Maltese police confirmed that they assisted Europol in the investigation, but a spokesperson denied that any Maltese nationals were arrested during the operation. The Spanish authorities also claimed that no Maltese individuals were involved in the coordinated operation.
Victims’ Stories
Victims of the scam have spoken out about their losses, with one family losing over €108,000 and another investor losing €70,000. Many victims are still waiting to hear back from the authorities on the outcome of the investigation.
Lessons Learned
The case highlights the importance of vigilance when investing, particularly in unregulated markets. As the Maltese police continue to investigate, it is hoped that justice will be served for those who lost out to this elaborate Ponzi scheme.