AG: US$20M was collected in alleged pyramid scheme

-BoG says firm, principals closed local bank accounts earlier in the year

Accelerated Capital Firm Inc (ACFI), an alleged pyramid scheme that is now the subject of an investigation, collected approximately US$20 million from wouldbe investors, according to Attorney General Anil Nandlall, who yesterday echoed the call for those who committed funds to approach the Guyana Police Force (GPF).

“We need to put together a database of investors and the sums invested so that if possible they can be reimbursed,” he announced at a virtual press conference.

According to Nandlall, an investigation has so far revealed that approximately US$20 million was turned over to ACFI. He had previously indicated that some 17,000 Guyanese had been affected by the scheme.

“I am shocked at the number of persons who allowed themselves to be ensnared and the volume of money they invested,” he exclaimed before adding that no one knows where the money is.

ACFI has no bank account as its application for a commercial bank account was denied. Also denied was an application to the Guyana Securities Commission (GSC) for a licence to operate.

A release from the Bank of Guyana (BoG) last evening also showed that the company and its principals, Yuri Garcia Dominguez and Ateeka Ishmael, never deposited anything near the sums it is alleged they collected.

According to a BoG press release, ACFI had one bank account, with the Bank of Baroda (BoB).

While the current balance was not revealed, the release noted that the highest sum ever retained in the account at one point was $14.6 million. The account has from January to February, 2020, conducted transactions totalling $21 million. This account was closed in April of this year.

Dominguez, a Cuban national who was recently naturalised, had two bank accounts; one with BoB and another with the Demerara Bank Limited (DBL).

At BoB his highest balance was $200,000 while at DBL it was $2.3 million.

There were no transactions recorded at BoB but at DBL transactions ranging from $17,000 to $447,000 were recorded. The account at BoB was closed in April while the DBL account was closed in July.

As for Ishmael, her accounts were held at DBL,

Republic Bank Limited (RBL) and the Guyana Bank for Trade and Industry (GBTI).

At RBL, the highest balance recorded was $341,000, at DBL $459,000 and an unidentified amount at GBTI.

At two of the three banks the accused is said to have engaged in transactions between $5,000 and $10,000 while the transactions at GBTI ranged from $5,000 to $459,000. Deposits made across all three accounts totalled $ 7 million.

The BoG was keen to note that all transactions recorded including foreign transfers were “small and insignificant.”

The question of where the invested money went is one of the primary concerns of investigators.

The BoG has committed to co-operating with authorities as the investigation continues.

According to Nandlall, Dominguez has claimed that he holds bank accounts in Las Vegas and Germany.

The AG, however, expressed doubt as to the veracity of this statements, while noting that American authorities have peculiar rules about Cuban nationals doing business in their country and were unlikely to allow such a sum to just appear in an account there.

The investigation into ACFI was made public on Thursday when Nandlall announced that a task force had been formed to investigate their operations. This followed the receipt of a series of complaints from investors and has so far resulted in the two principals being detained for questioning.

ACFI has claimed that it uses a foreign exchange platform to trade and it seems that all aspects of the scheme operate online via training webinars, WhatsApp and emails. The methods of payment used to invest and trade are credit cards and wire transfers.

However, Stabroek News has found that a significant number of investors have been making cash payments.

Individuals were invited to invest $300,000 to join a “circle” and then invite others so that their “circle” could extend to eight or more persons after which they would receive a percentage of their investment.

Specifically, investors were told that they would receive 50% of their initial deposit one month from the date of that deposit. An investor was also promised an opportunity to earn commissions and profits if they invite new members.

The payment plan states that for every person recruited, the investor would earn 10% of the amount invested by that person within five business days of their deposit. Any investor who recruited three additional persons was promised an additional 10% monthly lifetime payment.