City Police in London have warned of a major Ponzi Scheme , suspecting that CWM (Capital World Markets) maliciously targeted hundreds of members of the Gurkha and Nepalese community in the city, culminating in a potential scam worth an estimated $72.9 million (£50 million).
Test your knowledge, win a prize! Take the Finance Magnates quiz...
The latest news surrounding the suspected investment scam stems from a multi-thronged investigation last year in May during which City of London Police warned that a number of members of the UK’s Gurkha and Nepalese communities were potentially at risk from CWM's fraudulent fund. Following promises of guaranteed returns in excess of 5%, City of London Police were active in distributing letters to potential victims for more information on the managed fund and to ascertain the scope of CWM’s illicit operations.
CWM had been the focus of law enforcement officials for most of 2015, after police raided the offices of CWM at Heron Tower in March, consequently arresting ten men and three women employed at the foreign Exchange brokerage arm of the firm.
Damage Assessment
Unfortunately for both the potential victims of the CWM’s false promises and the police, the scale of the scheme seems to be far larger than originally realized. Authorities are estimating the scam to be in excess of $72.9 million (£50 million), and are urging all members of the local Gurkha and Nepalese community to come forward if they have invested in the fund.
According to City of London Police Detective Chief Inspector Dave Manley in a recent statement on the investigation: “The evidence suggests that representatives of CWM targeted hundreds of members of the Gurkha and Nepalese community and then exploited them in order to defraud millions of pounds.”
“The investigation is progressing well and my concern now is that the voices of the majority of victims will not be heard in the judicial process if they do not come forward very soon. They are also missing out on receiving the financial advice and psychological support that is available to them at what will be a very difficult time,” he added.
