1 week Ago By Youri Kemp Senior Business Reporter [email protected]
Gawaine Ward, senior manager in the Enforcement Department of the Securities Commission of The Bahamas (SCB), told Guardian Business yesterday that the Creators Alliance multi-level-marketing (MLM) scheme is under investigation, and the people behind it can face summary conviction and fines of up to $100,000 per incident if found guilty. The Creators Alliance scheme has collected thousands of dollars from Bahamians, promising them a return on their investment if they watch certain videos online. “If you market or advertise a scheme, or if you invite or recruit anyone to join or participate, then you become liable on summary conviction for a fine not exceeding $100,000,” Ward said.
He continued: “People think that it’s only $100,000. No, it’s $100,000 per offense. And so if you are found to have done this with three people, that can become three different offenses for each person, so it can add up.
” The SCB is addressing the issue by educating the public and further investigating the matter. There have only been anecdotal reports of financial losses related to the scheme, such as one individual who said on social media that he invested $3,056 and received only $300 in return. Ward said: “The best defense is offense.
In other words, if you inform yourself, and you make sure you are aware of whoever comes to you, you can tell them no, thank you.” He also said: “I cannot say at this point who started it. We do have an idea as to who might be involved in this, but we can’t get involved in that discussion in the media at this time.
But that is something we are looking into in terms of who is involved. It is something we are aware seemed to have started outside of the jurisdiction and made its way here, and the persons promoting this, now that it’s here, they can become liable to criminal prosecution.” The SCB cannot disclose the origin of the scam, or the exact financial loss to Bahamians.
The scheme uses stablecoins like USDT or tether for investments. The Creators Alliance scheme asked individuals to invest and then bring more people in to invest and to watch videos. Individuals are paid per view and the payment is not made in Bahamian or US currency, but in cryptocurrency.
“This is basically an MLM scheme, where you get persons in under you, and they are encouraged to get persons in under them, and so on and so forth, building itself out,” said Ward. “These things, they are finite, because in a country like The Bahamas, there are only so many people that will get involved in this, and so at some point that pyramid scheme is going to collapse.” Ward continued: “Bahamians need to be cautious on anything of this nature.
Especially with persons coming to them and saying that they can make money and all they need to do is give them money. Be very careful of arrangements like that.”.
