HYIP Investors May Face Money Laundering Charges
Gareth Manning from the Jamaican Gleaner is reporting information from an interview with attorney-at-law and University of the West Indies lecturer, Shirley-Ann Eaton.
HYIP ‘investors’ now stand to lose big as government laws and regulations change to target HYIPs and online ‘investments’. Gareth Manning did a recent interview with Shirley-Ann Eaton who is a former secretary of the Jamaica Bankers’ Association. Eaton says that money ‘invested’ with these type of schemes (A3union was included) CANNOT be returned by the court system in Jamaica. She points out, this is because the law does not cover schemes offering excessive interest on money loaned. The recovery provision only covers vehicles that carry a rate of 40% or less per year. The ridiculously high rates like 133% in 30 days is NOT covered by Jamaican law.
Furthermore, participants in the HYIP can ALSO FIND THEMSELVES IN PRISON if the schemes are found to be engaged in any sort of money laundering. Because these schemes are unregulated and high yielding, they do not operate within the normal regulated banking and securities system which makes them a desirable vessel for money launderers.
“I don’t know of anywhere in the world where anybody is getting a return of 120 per cent per annum on any kind of investment,” Eaton argues. “What if, willfully or inadvertently, these schemes contain proceeds of crime? What if money being given to them actually is criminal proceeds?”
Under the recently enforced Proceeds of Crime (Money Laundering Prevention) Regulations in Jamaica, any person can be found to have committed an offence under the act if that person knows or believes or even has reasonable grounds for knowing or believing that those handling their funds are engaged in laundering. If your HYIP is not registered with the proper securities and tax related authorities and is not reporting your tax positions on a gain or loss, that is reasonable grounds to believe.
If convicted before a resident magistrate, that person could be ordered to pay a fine not exceeding $1 million or be sentenced to a term not exceeding one year or to both a fine and imprisonment. If indicted before a Circuit Court, however, that person could face imprisonment of up to 10 years and a fine. In addition to prison terms for laundering, investors could face severe pressure from tax authorities. as under law they should be filing their tax returns.
In Jamaica the tax authority is investigating the use of proceeds from these ‘investments’.
Tax Administration Department spokesperson Meris Haughton, while unwilling to disclose the approach being taken to recover the billions owed to it in income tax by these investors, noted that “all annual sums invested are taxable and we would not want to disclose exactly how we will recover those taxes”.
The Jamaican Financial Commission (FSC), there are over 20 “extremely high-yielding unregistered investment schemes operating in Jamaica”. Here is their published list.
- Caribbean Real Estate Investment Fund (CAREIF)
- World Wise Partners Limited
- A3 Union
- Swiss Cash
- Higgins Warner Music and Entertainment
- MayDaisy E-Partner Plan Club
- F1 Investments/F1 Holdings
- Wealth Builder and Associates
- Right Vision E-Partners Private Members Club
- Strategical Alliance Investment Company
- SGL Holdings
- Partner Financials
- Kingdom Investments Unlimited International (KIUI)
- Image Consultants & Services
- Nipo Farms
- USIMO
- Other investment schemes not Included because of court proceedings:
- Cash Plus Group
- OLINT Corp. Limited
- Overseas Locket International Corp.
- LewFam Investments and Trading Limited
- LewFam Investments Club
Source: jamaica-gleaner.com
I think shirley eaton is not very bright. I live here in the USA. There are many companies here that do forex and give the same rate of return or higher. She is speaking with a very limited viewpoint based on her experience living in jamaica.
What Shirley is probably, and from the list that was supplied targeting, are ponzi like companies that basically makes use of investors fund to pay investors funds.
Indeed she’s a little shallow when it comes to rate of return, but the bottom line of the whole article is that a typical HYIP investor might be liable to what they invest in; which is real sad for the case of people who don’t know they’re scams after all.
[quote]What Shirley is probably, and from the list that was supplied targeting, are ponzi like companies that basically makes use of investors fund to pay investors funds.[/quote]
As a fervid opponent of these schemes I’m in agreement with your observations, albeit the pretext of regulating what has been described in this article is rife with defects which have far reaching implications that go beyond the scope of what they are apparently trying to curb. Or is it?
Gambling and investments are regulated and not really the issue in this case. The internet however, holds a much more diverse and dynamic frontier which has for the most part been an enigma to any jurisdictional body and it should continue to develop without restrictions or interference whatsoever. Having said that, I believe the NWO’s plans to solve that problem.
If a crime occurs you can bet your bottom dollar it will be investigated. Charges will be laid, and someone will be held accountable. That is to say if they can find the culprit. To make the victims of these schemes into the criminals IS criminal and self evident of the frustration the establishment has trying to discourage participation in a multi-billion dollar unregulated industry. As it was stated: “money ‘invested’ with these type of schemes CANNOT be returned by the court system in Jamaica. She points out, this is because the law does not cover schemes offering excessive interest on money loaned. The recovery provision only covers vehicles that carry a rate of 40% or less per year.” Allowing for a higher threshold opens a can of worms which otherwise goes overlooked and unnoticed – That is: Have you noticed lately how much interest your actually paying on those credit cards? How about the accumulative amortization of that mortgage? Oh, and let’s not forget the IMF loans to Jamaica! Need I say more?
In the US a solution being tabled to curtail this problem among many others which plague the internet is the debate ongoing to relax current restrictions placed on corporations to further expand their ability to buy up and merge with competing companies. In essence, creating a monopoly for providing the very service itself (your ISP) and giving high-speed preference to top paying advertizing customers while leaving the small time operator extremely slow connections if any at all. Certainly not a recipe for a open free market as we are led to believe.
Another equally important implication to bring to light is related more to a matter of “contract” and all the dangers associated with diminishing a persons right to do that freely. No matter which country your from, further restrictions are being imposed to limit your freedom of choice. The cabal of power understands free will and choice are fundamental to any societies survival – even if that choice is to die or kill for a higher purpose. (ie: a war) Ideology is at the crux of any organization and if you can be convinced theirs is the better way, then the logical conclusion is to succumb to that dogma. So the consensus has been to intimidate and persuade through the well established methods of coercion, misdirection, avoidance and the most popular – as in this case; the usage of ill-informed so-called authoritative expert testimony . All of which are legal depending on which side of the bench you traversed.
Could this oppression be the underpinnings of what attracts so many people to the alternative promise of riches in the first place?
As much as I hate to see people taken for a ride, it ultimately was their choice if only they could admit it and take responsibility for there own actions – rather than expect a hand out for their mistakes. Having authorities involved appears to give them the opportunity and excuse to “protect” you from yourself more often than addressing the issue of serving the public interests.
Interesting analogy followfortune. I would say things really didn’t get out of hand even with the situation that most HYIP investors get themselves into. People learn after mistakes and move on.
But to get the Feds or any regulatory bodies to dictate on gambling, online investing seems to be a little too much to swallow IMO.
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