Ponzi Scheme Repayment

Nov 19, 2020 Editorial

Kaieteur News – It was only a matter of time and commonsense, but the feared prospects are becoming more and more obvious and undeniable. Though they promise that all will be repaid, some are going to be shafted, most likely, many look like they will come up empty, and be forced to live with their losses. Despite repeated commitments before the court(s) by the Ponzi accused, the repayment outlook seems shaky.
Looked at sensibly, the proof of the pudding could only have been satisfactory under a single set of conditions. That would be in sincere supporting actions alongside a credible and comprehensive program, to make good on the promised restitutions of the Ponzi partners.
There is trouble, because the husband and wife team have faltered in the delivery and the timing committed to before the courts. The same folks, who used, and stand accused of bilking 17,000 Guyanese of over four billion dollars are falling short, not delivering to those they promised to make whole. It is on record, as they did so publicly, as detailed by this paper.
It is now also on public record, that the alleged Ponzi delayers cannot carry through with commitments because ranks from SOCU raided their home and seized electronic equipment, among other things (KN November 7). Apparently, the seized electronic equipment, according to the alleged Ponzi operators’ attorney, has severely handicapped the repayment arrangements made.
That may be so, since in today’s world, just about everything of substance in a business is housed in the technology that can be afforded and installed. However, it is only one part of the story that is now dragging on, like a patient in a coma and on a ventilator: there is breathing, but no movement.
There is hope for those involved, but there is the fear too, that the roof could cave in without notice and it would all be over, as in done and gone.
We say this, because notwithstanding electronic files, records and systems to facilitate repayments, there are some gaps, which we now specify.
Unless, the SOCU raid and seizure happened within the first days and hours of the promised repayment window, it is unreasonable and unacceptable that the situation as it stands is of “only 27 out of the 17,000 investors being repaid.”
Something is not adding up and looks suspicious with that paltry number of people repaid. In fact, we have to say this: everything about such things – the people, the arrangements, the delays, and state of repayments – look suspicious. The alleged Ponzi operators have nothing in their favor: not trust, not credibility, not any benefit of the doubt.
Further, as we all should know, and it is a common business practice, it is still a paper world, with physical documents to build and track clients in electronic systems, which affords tracing them back and forth, from paper to systems; one substantiates the other. It is rare for everything to grind to a halt. Still further, sound business practices and usually mandatory rules and regulations necessitate backup files in another location for contingencies purposes. That the residential equipment was seized by SOCU, should not mean that everything is at a standstill and that those out-of-pocket are left hanging.
Those paper or backup records of clients can be retrieved, and, after the briefest of holdups, there can be a resumption of payments utilizing an offsite fallback arrangement that connects money managers (with whom funds are held) and banks to transfer the cash owed. The former are to unwind any assets to free up the funds, so that there is liquidity to transmit to banking relationships, for ultimate credit to clients that are on the hook.
This was what was committed to in open court over five weeks ago (KN October 4). Therefore, whatever the underlying set of circumstances that have dashed the expectations of the swindled, this has taken too long, and is not looking good. Now there is talk of repaying in crypto currency; that could mean losses when liquidated.
The question arising is, whether deliberate foot-dragging and deceptive tactics are not being employed; whether it not yet another trick put into play to pull the wool over the eyes of the short-changed.

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