Another pyramid scam stuns Lankans

By Natasha Gunaratne

Who says Sri Lankans are smart given the number of scams that people get easily trapped in? The latest one to leave hundreds with empty pockets is another pyramid scheme now being investigated by the Central Bank and the police. A probe by The Sunday Times FT reveals that around 18,000 people were taken for a ride by a company led by two Indians who didn’t invest any money.

The scam discovered last week which drew many amongst Sri Lanka’s gullible population came despite repeated warnings by the Central Bank to the public to be wary of pyramid schemes ever since the GoldQuest pyramid scam hit Sri Lanka some years back.

George Fernando, Chief Executive Officer of the Financial Intelligence Unit at the Central Bank, confirmed that there was an investigation. Police guards have been posted outside the Mount Lavinia office of Seagull Softwares (Pvt) Ltd, a BPO scheme.

On Wednesday investors, including several young people, stormed the premises but the two Indians were missing and damaged office equipment while demanding their money in what is now seen as a "get rich quick" scam

Victims told The Sunday Times FT that some people had invested amounts ranging from a few thousand rupees to millions, which went into a deposit opened by the two fraudsters at the Nations Trust Bank. According to one of Seagull's investors, a man working in the IT field, this was simple data entry which required clients to work online.

In fact, Seagull's investors constituted of IT and other professionals but some were also poor people who borrowed money and invested so they could finance their education or their children's education. Another investor said, "I have quite a few friends who have invested in this scheme who are now left with nothing."