Pyramid Scheme Dupes Hundreds of People in Kyrgyzstan
A devastating pyramid scheme has been uncovered in Kyrgyzstan, duping hundreds of people into believing they could earn exorbitant profits with minimal effort.
The Scam
The Charge Fast company, established by 43-year-old Syezdbek Sainazarov in July 2023, promised investors high profits in a short period of time in exchange for bringing new members into the scheme. Victims paid between $110 and $17,800 to join the fund.
Victims’ Stories
One victim, Aelita Muratalieva, told RFE/RL that Charge Fast advertised itself as a lucrative and legitimate investment project. She invested modest amounts, earning interest of around 27 cents per day before eventually losing her entire investment.
Several others reported similar experiences to police, including one woman who lost $4,500 after being convinced by representatives that it would be doubled.
Authorities Take Action
Police made arrests in connection with the scheme, including Sainazarov and his brother Omurbek, a manager for the company. Over 100 people filed complaints of financial loss in Birinchi May alone.
Warnings and Statistics
Despite warnings from authorities and reports of thousands falling victim to pyramid schemes in recent years, many continue to invest their money in suspicious schemes. Official statistics show that:
- 358 criminal cases involving fraudulent investment plans were launched in Kyrgyzstan last year
- At least 217 sent to court and others still under investigation
Expert Advice
Financial adviser Aslanbek Kenenbaev urges people to seek advice from experts before investing, warning against schemes promising high interest rates and urging victims to avoid any scheme that tells them “sign up, invite others, and earn interest.”
Consequences of the Scheme
Those convicted of organizing financial pyramids in Kyrgyzstan face up to eight years in jail, while advertising such schemes is punishable by up to $2,230 in penalties.
It’s essential for people to remain vigilant and cautious when investing their money. Always seek advice from experts and avoid any scheme that seems too good to be true.