Federal police expose network of international investment fraudsters who targeted Muslims
In mid-September, the Brussels federal judicial police carried out a major operation to dismantle a network of international investment fraudsters. A sophisticated pyramid scheme is believed to have deceived hundreds of investors, including Belgian residents. The gang mainly targeted Muslims.
The network first lured victims with expensive financial training courses that promised to teach them how to invest in the currency market. These courses served as a springboard to larger-scale fraud. Those who enrolled were presented with a “unique investment opportunity” with a supposedly guaranteed and exceptional return. The fraudsters promised profits of up to 350 per cent in barely sixty weeks.
In reality, no actual investments were made. It was a classic Ponzi scheme, in which money from new participants was used to pay out earlier investors. This created the illusion of success. The organisers also tried to capitalise on cultural differences by distributing so-called halal certificates for investments.
“This way, they wanted to convince Muslim investors that the investments were in line with Islamic law. According to the investigation, 99 per cent of the identified victims belong to this community,” stated the federal police.
Tip of the iceberg
Around twenty Belgians have now filed complaints. However, the police suspect that this is only the tip of the iceberg and that there are many more victims, both in Belgium and abroad. “Many victims probably remain silent out of shame or fear of never seeing their money again.” In Belgium, several hundreds of thousands of euros are believed to have been lost. Internationally, the damage could run into millions of euros.
The authorities emphasise that investment fraud is on the rise and often has the same characteristics: unrealistic promises and guaranteed returns. “These are almost always red flags,” warns the police.
Illustration © PHOTO IMAGEBROKER
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