Seychelles Supreme Court Seizes €29 Million in Largest Ponzi Scheme Fraud Case

The Seychelles Supreme Court ordered the permanent seizure of €29 million following an investigation into a complex Ponzi scheme that operated through the jurisdiction.

Background

• Ponzi schemes lure investors with the promise of high returns from legitimate businesses (What is a Ponzi scheme?)
• Profits come from new investor funds, creating a false appearance of profitability

Uncovering the Fraud

• Seychelles Attorney General’s Office took down the scheme on behalf of the Financial Intelligence Unit (FIU)
• Suspicious transactions linked to the scheme reported by local and international entities

Complex Scheme Structure

• EU-origin criminal proceeds funnelled into Seychelles bank accounts
• Two international business companies based in Seychelles involved
• Fake documents submitted to deceive Seychelles-based bank

FIU’s Role and Collaboration

• Analysis revealed Ponzi scheme structure
• Collaboration with financial service providers and international partners
• Prevented Seychelles from becoming a haven for international criminals

Current Investigations and Reporting

• Discovery of ongoing European investigations and court proceedings
• Major players arrested for organised fraud, money laundering, and illegal banking practices
• Estimated value of the fraud over €25 million

Long-term Investigations

• FIU collaborating with partners in the US, the UK, and Asia on several long-term investigations into similar schemes

Suspected Involvement

• If you suspect involvement in a fraudulent HYIP, report suspicious transactions to the FIU or your local financial regulator

What is a Ponzi scheme?

A Ponzi scheme is an investment scam promising high returns with little risk to investors. In reality, the profits come from new investor funds, creating a false appearance of profitability. The scheme is named after Charles Ponzi, who conned investors out of millions in the early 1900s using a similar method.