Table of Contents
Introduction
EQT Bank, a private equity corporation located in Sweden, has announced that the Ponzi scam known as Dragon Global Finance would be restarted. Dragon Global Finance scheme is claimed to have deceived thousands of investors all over the world. Due to the fact that the Dragon Global Finance Ponzi scheme was one of the greatest and most infamous financial scams in history, this news has caused shockwaves to be sent across the financial sector.
Background
Kevin Foster, a businessman from the United Kingdom, was the one who first launched the Ponzi scam known as Dragon Global Finance in 2015. The hoax assured potential investors that they would earn significant returns on their money by capitalizing on the profits generated by a fictitious network of assets in a variety of markets, such as commodities, technology, and real estate. Dragon Global Finance, which is owned and operated by Foster, engaged in aggressive marketing strategies in order to entice potential investors by assuring them of returns of up to 18% per year.
The plan was discovered to be a fraud in 2017 when Foster vanished with an estimated $5 billion in monies stolen from investors. It was eventually discovered that the alleged investment network was a hoax, and the money from the investors was utilized to maintain a luxury lifestyle for Foster and his colleagues. About 30,000 investors from all over the globe have been taken advantage of by the scam, with the bulk of the victims coming from Asia and the Middle East.
EQT Bank’s engagement
EQT Bank has said that it has purchased the rights to the Dragon Global Finance Ponzi scam from Foster’s partners and has verified that it would be relaunching the Ponzi scheme known as Dragon Global Finance. The bank has made it clear that it intends to continue using the same business model as the first program, during which it guaranteed significant returns on investment for participants.
Investors and financial authorities have reacted angrily to this statement, and many of them have accused EQT Bank of aiming to benefit from a fraudulent plan. The bank has provided an explanation for its choice, noting that it has performed all of the necessary research and is confident in its ability to carry out the plan in an honest and open manner.
Regulatory action or reaction
After the announcement of the reboot, financial authorities all over the globe have been formulating responses to regulatory proposals. The United Kingdom’s Financial Conduct Authority (FCA) has issued a warning to investors, indicating that the Ponzi scheme operated by Dragon Global Finance is unlawful and recommending investors steer clear of the company. In addition, the United States Securities and Exchange Commission (SEC) has issued a warning, noting that the plan in question is a fraudulent investment scheme, and advised investors to proceed with extreme care.
Also, the regulatory reaction has been extended to Sweden, which is the location of EQT Bank’s headquarters. The Swedish Financial Supervisory Authority (FSA) has declared that it is keeping an eye on the current circumstances and is ready to take action if it becomes essential to do so. The Financial Services Authority (FSA) has issued a warning to investors, noting that they should be aware of investment programs that promise large returns with little or no risk and that they should avoid investing in such schemes.
Investor reaction
Concern has been raised among investors who lost money due to the initial scam since the announcement of the relaunch has been made. Several people have condemned EQT Bank for trying to profit from a fraudulent plan, and they have demanded that the bank be held liable for the losses that were sustained by investors in the first scam.
Concerns about the lack of openness around the revival have been voiced by a number of investors. EQT Bank has not revealed any specifics on the manner in which it intends to run the program or the safeguards that it would put in place to protect the funds of investors.
Conclusion
Concern and indignation have been expressed by investors and financial authorities on a wider scale in response to EQT Bank’s decision to relaunch the Dragon Global Finance Ponzi scam. The news of the scheme’s relaunch has been received with suspicion and condemnation due to the fact that it was responsible for the scamming of thousands of people all over the globe.
The regulatory reaction has been prompt, and financial regulators all around the globe have issued warnings to investors, recommending they avoid the plan. EQT Bank has said that it has completed due diligence and is satisfied that it can administer the plan in an ethical and transparent manner. The bank has justified its decision to restart the scheme by saying that it has done so.
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