Massive Financial Pyramides Schemes Inflict over 8 Billion in Destructive Aftermath
Spotlight on Kazakh Deputies Pushing for Accountability on Financial Pyramids. A Kazakh deputy, Yuriy Li, calls for stricter punishments to tackle financial pyramids, following reports of numerous incidents over the past three years, according to Total.kz.
"From March 1, 2020, to April 1, 2021, the committee on legal statistics and special records of the General Prosecutor's Office of the Republic of Kazakhstan registered 287 offenses under Article 217 of the Criminal Code of the RK related to financial pyramids, causing a total damage of 8,545,297,645 tenge," said Li.
In high-profile cases like LLP 'Mudaraba Capital', LLP 'Astex.kz', and LLP 'ACD Technology', one organizer has been detained. Li questions the fate of celebrities who lend their influence to these illegal enterprises, shamelessly advertising high-yield investments with no actual risks. Despite their current pleas of deception, their promotional materials are indelible, notes the deputy.
Li inquires about the accountability of these celebrities and why they have not faced administrative repercussions. He recommends the formation of a working group at the General Prosecutor's Office to examine judicial practices and determine the role played by celebrities in fueling the financial pyramid schemes. Amendments are needed to the Law of the RK "On Advertising" and the Criminal Code to hold those who promote such pyramids accountable for the widespread participation and significant damage incurred, as summed up by Li.
The Dangerous Allure of Financial Pyramids
Financial pyramids, promising sky-high returns through risk-free investments, are illegal in Kazakhstan. Public figures who foist these deceitful schemes upon unsuspecting investors may face legal consequences if they know or should have known their illegality.
Typically, investigations are initiated by regulatory or law enforcement agencies to determine if any laws have been breached. If found guilty, individuals promoting these schemes could face fines, penalties, or other administrative sanctions. In more severe cases, criminal charges might be filed.
However, without specific details or names, it remains challenging to pinpoint which public personalities may be involved or under investigation. Public figures should exercise caution when endorsing investment opportunities to prevent devastating legal and public ramifications.
- Deputy Yuriy Li suggests stiffer punishment for those who promote illegal financial pyramids, such as the recently detained organizers of LLP 'Mudaraba Capital', LLP 'Astex.kz', and LLP 'ACD Technology'.
- Li is concerned about the lack of accountability for celebrities who lend their influence to these pyramid schemes, despite evidence of their promotional materials.
- The deputy recommends forming a working group at the General Prosecutor's Office to examine judicial practices, focusing on the role celebrities play in fueling financial pyramid schemes.
- Amendments to the Law of the RK "On Advertising" and the Criminal Code are proposed by Li to hold those who promote such pyramids accountable for widespread participation and significant damage incurred.
- High-profile cases like these underscore the dangerous allure of financial pyramids, which are illegal in Kazakhstan, and the need for strict legal action against those who participate in or promote these schemes.
