Highlights:
- Bank of Uganda Offers Tips to Spot Pyramid Schemes
- Ugandan Police Investigate Pyramid Scheme Victims
- Capital Chicken Pyramid Scheme Scam Uncovered
In a recent development, the Bank of Uganda has provided guidance on recognizing Ponzi or pyramid schemes. According to the police, approximately 40 Ugandans have fallen prey to a pyramid scheme orchestrated by Capital Chicken Limited. This company had been collecting investments from various individuals, promising substantial and swift returns on their investments.
Over a span of three years, victims reportedly lost more than sh1 billion. Capital Chicken allegedly operated an office on Kanjokya Street in Kampala Central Division from 2021 to 2023. During this time, individuals entrusted their money for investment, enticed by the promise of lucrative returns.
The police observed that this operation initially seemed smooth, but concerns arose when some members began encountering unusual behavior from the management. Reports surfaced that members were often told to “come back later” when visiting the office for transactions.
On September 29, 2023, the situation took a serious turn as individuals arrived at the office only to find it unexpectedly closed. Promptly, concerned citizens reported the matter to the police.
The Bank of Uganda has responded by sharing tips to help people identify pyramid schemes. These tips include recognizing investments that promise high returns with minimal risk, providing consistent returns regardless of market conditions, describing investment strategies as overly complex or secretive, focusing primarily on recruiting new clients or investors, and making it difficult for both old and new investors to withdraw their money from the scheme.
