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Tag: Ponzi

FinCEN Files: HSBC moved Ponzi scheme millions despite warning

FinCEN Files: HSBC moved Ponzi scheme millions despite warning

World
HSBC allowed fraudsters to transfer millions of dollars around the world even after it had learned of their scam, leaked secret files show.Britain's biggest bank moved the money through its US business to HSBC accounts in Hong Kong in 2013 and 2014.Its role in the $ 80m (£62m) fraud is detailed in a leak of documents - banks' "suspicious activity reports" - that have been called the FinCEN Files.HSBC says it has always met its legal duties on reporting such activity.The files show the investment scam, known as a Ponzi scheme, started soon after the bank was fined $ 1.9bn (£1.4bn) in the US over money laundering. It had promised to clamp down on these sorts of practices.Lawyers for duped investors say the bank should have acted sooner to close the fraudste
Government introduces Bill to check ponzi schemes in Lok Sabha

Government introduces Bill to check ponzi schemes in Lok Sabha

Finance
New Delhi: In a bid to save gullible investors from ponzi schemes, the government Friday introduced the Banning of Unregulated Deposit Schemes Bill, 2019 in the Lok Sabha that seeks to put in place a mechanism by which such depositors can be compensated. The Banning of Unregulated Deposit Schemes Bill, 2019 will replace the Ordinance on the same. The bill seeks to help tackle the menace of illicit deposit taking activities in the country, which at present are exploiting regulatory gaps and lack of strict administrative measures to dupe poor and gullible people of their hard earned money, according to the government. The bill was introduced by Finance Minister Nirmala Sitharaman in the Lower House amid noisy protests by Congress members over the ongoing political crisis in Karnataka. The...
The SEC busted an alleged $1.2 billion Ponzi scheme. Here's how not to be victimized.

The SEC busted an alleged $1.2 billion Ponzi scheme. Here's how not to be victimized.

Finance
The Securities and Exchange Commission on Thursday announced charges against a group of unregistered funds and their owner, for allegedly fleecing retail investors through a $ 1.2 billion Ponzi scheme. The victims include more than 8,400 individuals, many of whom are elderly.In a Ponzi scheme, the perpetrator generally takes money from one set of investors to pay off others, often earlier investors or simply diverts the proceeds for private gain.Fraud complaints have increased by 60 percent in the last five years, according to the Federal Trade Commission. "The frightening truth about fraud is scammers scam and liars lie," said Gerri Walsh, senior vice president of investor education at the Financial Industry Regulatory Authority, or FINRA, which regulates brokerage firms.To lessen the cha...