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Man arrested over conning 250 investors

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By ANDREW BAGALA

Posted  Tuesday, May 13   2014 at  01:00

In Summary

It is alleged that he has been claiming to be the owner of online companies, including Tesco Traders, Telex Free Inc., Massive Ad.com, Bank Electro and United Hype Link.

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Kampala- The police have arrested the owner of a city night club on allegations that he obtained more than Shs7 billion by false pretence from unsuspecting investors in an online forex trading scam.

The businessman was arrested last Friday after 250 unsuspecting investors complained to police.

It is alleged that he has been claiming to be the owner of online companies, including Tesco Traders, Telex Free Inc., Massive Ad.com, Bank Electro and United Hype Link.

Kampala Metropolitan Police spokesperson Patrick Onyango, said in 2013, the suspect moved around the country sensitising people to invest in his online forex trading company and that each member would get at least 20 per cent profits of the investment on a weekly basis.

“By April this year, hundreds had opened accounts in his companies and they were depositing in dollars on a weekly basis. But at the end of April, the websites on which they were depositing money had closed and the investors couldn’t access their funds or the

So they started complaining to the police,” Mr Onyango said yesterday.

Investors had registered in different categories. For instance, those in the diamond category would pay $25,000(Shs63m) and expected to get profits of $3,600 (about Shs9m)a week. Others would pay Shs3m, expecting to get Shs460,000 as profit per week.

Police officers said many didn’t even get a single coin in profits.

abagala@ug.nationmedia.com