KAMPALA – The Directorate of CID continues to investigate Capital Chicken Limited for operating a business of fund management without a licence, operating without an investment advisor’s licence and for obtaining money by False Pretence.
This was after claims of defrauding several victims to a tune of Ugx 5 billion. Police says the victims were offered profits as returns, through an online investment contract, at an attractive interest rate of 40 – 60%.
“It’s against the above background that we would like to caution the public about other Ponzi Companies in the market, some of which are under investigation by CID in coordination with the Capital Markets Authority. These include; Veta plan, Mall Fund, Great Wealth Youth Platform Africa, Cashmulla, Pio Crypto, Premium Clusters, Contract Kapital and Pacs Capital Limited among others. For instance, under Cashmulla, a user deposits Uganda shillings 17,000, and is encouraged to invite other users and earn a commission from users under them, which is a classic pyramid scheme tactic. The user cannot recover or withdraw their money,” Enanga Fred – Police Spokesperson in a statement.
“We wish to caution the public that this is another get-rich-quick pyramid scheme, with a potential of defrauding Ugandans. Year after, different pyramid scheme, change their company names during entry, then offer attractive packages or rewards after gaining numbers, they freeze the accounts and defraud the unsuspecting members of the public.”
Police urged the public to always carry out sufficient due diligence and only enroll in investment opportunities regulated by the Capital Markets Authority, or any other relevant regulator. In addition, they should seek investment advice from licensed investment advisors, before making an investment decision and avoid being victims of investment fraud.
