Three people have been arrested on suspicion of running a pyramid scheme in Prague. Police from the National Center Against Organized Crime (NCOZ) reported that there are currently 2060 investors and over one billions crowns in funds known to have been invested. Police believe that there are many more victims and believe the sum will be higher after a complete investigation. Police reported that the suspects face up to ten years in prison.
The three suspected Pyramid Scheme operators ran a company called J.O.Investment, offering investments with above average rates of return between 30 and 100%. The operators never actually invested any funds and instead bought luxury goods, cars and personal real estate. The group did not possess a license for operating an investment business, which is issued by the Czech Central Bank.
“We have concluded that the company, without authorization, offered the general public investments in global financial markets in the USA, Asia and Europe focused on stock indexes, foreign exchange, futures and commodities,” said Jaroslav Ibehej spokesperson for the NCOZ. In case others have been victims of this company please contact the NCOZ at their address: P. O. BOX 41/NCOZ, 156 80 Praha 5 – Zbraslav, or to their Data Box: eesyd9x.
