By Davis Mugabi
The Police are probing a number of Ponzi-Schemes for Fraud.
The schemes under probe include VETA Plan, MAL Fund, Great Wealth Youth Platform Africa, Cash Mula, PIYO Crypto, Premium Clusters, Contract Capital and Pax Capital Limited.
Police Spokesperson Fred Enanga says schemes like Cash Mula, where users deposit funds and are incentivized to invite others, create a classic pyramid structure. However, users face the predicament of being unable to withdraw their funds, indicative of fraudulent practices.
“These schemes follow a pattern: they lure individuals with enticing promises, gather members, and subsequently freeze accounts, defrauding unsuspecting participants,” warned Enanga.
On Capital Chicken, Enanga said a probe led by CID Director is ongoing.
“Capital Chicken Limited is under investigation for operating without licenses, specifically for business or fund management and investment advisor activities, and for obtaining money through false pretense,” Enanga stated during a press briefing at Police Headquarters in Naguru.
Enanga urged citizens to scrutinize investment opportunities diligently, to avoid falling victim to fraudulent schemes preying on individuals seeking quick financial gains.
He advised the public to look out for investment schemes endorsed by authorities like the Capital Markets Authority or other relevant regulators such as the Bank of Uganda.
