More Batswana continue to flock an opaque offshore investment scheme - Eurex Trade, despite warning from authorities, Botswana Guardian investigations can reveal. Available records show that over 20 Batswana who have actually invested into the Eurex Trade scheme, which experts have labeled a ‘Ponzi Scheme’ are not aware of the danger associated with investment in the company.
This includes prominent members of the public. The “Ponzi Scheme” according to research has already managed to lure into their coffers, investments from hundreds of people not only in the Western nations but has significantly convinced Africans to also invest in it. Eurex Trade has tricked hundreds of Batswana, South Africans, Basotho, Namibians, Nigerians and many other nationalities across the world.
The “Ponzi Scheme” also uses the ‘Referral System’ as a strategy to lure more clients. What happens is that the very few people, who have invested their money with Eurex Trade, would be paid their daily royalties for a certain period. They would then be used to lure their friends into the scheme, being promised in return a 5 percent payback of the sum of the invested money for every customer they bring.
Every single person who invests money into the scheme would be listed on the EurexTrade website and their details cited as a contact person for any new interested investors. Although the majority of the people contacted by Botswana Guardian refuse to comment on their investment, those who spoke said they were not aware of the directors of Eurex Trade.
“I was introduced to the Eurex Trade by a friend of mine,” said Jonathan Nfila, who said he has been an investor with the Eurex Trade for two years now. Although Nfila says that the EurexTrade took Batswana by surprise, he acknowledged that he is also paid to help more Batswana invest their money into the scheme.
According to Dintlenyane Sedimo, a local EurexTrade agent who also has invested in the scheme, one has to open an online bank account or exchange centre, which would allow for funds exchange between the EurexTrade and the individual investor. “You would then need to send money through service providers like Western Union, which would then be credited into the online account,” she stressed.
Further Sedimo said security for people’s investments was not compromised in any way. However, Melville Stuart Brown, Deputy Chief Executive of the Non-Bank Financial Institutions Regulatory Authority (NBIFIRA) said they have since December, been warning the public to avoid investing in the scheme. She said they carried out investigations which found out that EurexTrade scheme was an illegitimate Ponzi scheme. A financial advisor at AON, Roy Davis agrees.
He became aware of the scheme after many of his clients sought advice on whether or not to invest with the “Ponzi scheme’. “I then did my own research and investigations and found out that EurexTrade was just a financial scam, waiting to explode,” he said. Richard Harriman, author of Consumer watchdog in a local newspaper, echoed the very same sentiments.
The scheme promises investors high daily returns that are too good to be true. They are told that they can request Invested Principal Amount at any time and that there is a guarantee of up to 2.9 percent of Daily Investor’s Share Earnings and Profits paid on a daily basis. As good as it sounds, investment experts have rubbished such claims as scams and non-existent.
“Ponzi schemes are scams that pay initial investors with proceeds from new investors under the guise that they are making an actual business investment, when in fact the underlying business is non-existent or unsuccessful. Eventually, there are not enough newcomers to pay the existing investors and the scheme falls apart,” said Brown.