Seychelles Courts Seize €29 Million in Funds Tied to European Ponzi Scheme

The Seychelles Supreme Court ordered the permanent seizure of €29 million following an intricate investigation into a complex Ponzi scheme that originated in the European Union.

Background

• The money was transferred to Seychelles under the Proceeds of Crime Act.
• The Attorney General’s Office took legal action against the fraud on behalf of the Financial Intelligence Unit (FIU).

The Scheme

• New investors’ funds used to pay off earlier investors, creating a false impression of profits.
• Lured by promises of high yield investment programmes (HYIPs) with guaranteed returns.

Early Detection

• Suspicious transactions on accounts in Seychelles and other European jurisdictions.
• Initially routed to Seychelles bank accounts controlled by two international business companies.

False Representation

• Forged documents submitted to conceal the true nature of transactions.
• Investigations revealed ongoing court proceedings and arrests.

Collaborative Efforts

• International cooperation and information sharing among financial intelligence units and law enforcement agencies.
• EU investigations have revealed ongoing proceedings and arrests.

The Investigation

• A four-year long intricate probe.
• Several lengthy investigations in collaboration with US, UK, and Asian partners targeting alleged HYIPs.

Impact

• Predicted total value of the discovered fraud to surpass €25 million.
• Authorities continue to crack down on illicit activities and warn potential victims of questionable schemes.