Kigali: Rwanda Investigation Bureau (RIB) has arrested Jean Bosco Nsengiyumva, the manager of Supermarketings Global Ltd over investment scam activities, specifically crypto currency scam.
RIB Spokesperson, Modeste Mbabazi said: “The company strategies are misleading and confusing, attempting to make people believe that they can invest little money and earn exceedingly but end up losing and realize that they are dealing with swindlers.”
“Our investigations reveal that Supermarketings Global Ltd company encourages its members to pay a fee starting from $30 for the opportunity to sign up other members to earn commissions ranging between 2,5% and 10%. It had extorted Frw 5,000,000 from around 6,000 members in Rwanda, in the last one month of the illegal business. ”
Supermarketings Global Ltd business model is comparable to Multi-Level Marketing (MLM) which is considered risky since it is similar pyramid schemes.
Article 223 on illegal operations of currency sale or exchange under the law determining offences and penalties in general, warns that any person who, by any means, illegally sells or exchanges, national or foreign currency, commits an offence.
According to a recent Public Notice issued by the Central Bank, these scams require a client (recruit) to pay a fixed amount of money to the scheme promoters as a membership fee or initial investment and promise to pay a certain amount of money for the recruitment of new participants into the scheme and high interest in invested amount.
These schemes may be either product/service based where there is a mandatory purchase of goods (such as medicines), services (travel packages) or intangible property (such as digital coins) operated through a multi-level or network marketing.
The notice also states that these schemes, could also be based on payment of a mandatory minimum entry fee with no product or service consumption required (naked pyramid schemes). The common factor with these schemes is the promise to make the participant rich in a short period and with minimum effort.
As further investigations continue, RIB appeals to the public to be vigilant and to report any suspicious currency sale or exchange businesses that promise quick return on investment. (End)