Regifting company halts operation temporarily
The owners of a company that is currently the subject of a Police investigation for illegally running a pyramid scheme have advised they are ceasing operations temporarily.
Sow & Reap 5R Ltd has advised investors in public notices that they will not be receiving their “regifting” as part of their agreement, and will have to temporarily close for four weeks while they wait for funding to continue their services.
A number of people, who claim they were lured into investing in the scheme, have confirmed that they were advised that funding had dried up and the company is unable to make payouts as promised.
One of the investors said he was asked to put in $300 tala and get $900 tala after 21 days should he recruit four people to participate in the scheme.
The Police and the Central Bank of Samoa recently revealed they have resumed their investigations into private companies behind the re-gifting scheme, which encourages people to recruit others to participate by investing in their operations.
In a previous interview with the Samoa Observer, Sow & Reap 5R Limited Director, Darcy Nuuvali said they have run short of cash and cannot make their payouts.
“It is still open and people have been told to go to Siusega to collect their payout,” she said.
“We are the ones that are going out to do a presentation and we have informed [those in our Siusega office] to prepare payouts for people but we are told there is no money.”
The company is listed on the Ministry of Commerce Industry and labour online company registry. On the registry it noted the private company that has two shareholders was incorporated on 11 December 2020.
Attempts are being made to obtain a comment from the M.C.I.L. if they have looked into the activities of the company and what was the nature of the business during registration.
Following complaints about the schemes surfacing, M.C.I.L. made it clear that there are laws that restrict the public from being involved in pyramid schemes.
M.C.I.L. Chief Executive Officer, Pulotu Lyndon Chu Ling said if there was a license issued to operators involved in the scheme by the Ministry then it was issued “in a different nature of the business but not for a pyramid scheme”.
Pulotu said it is illegal to operate a pyramid scheme and no businesses are approved for that kind of activity from the Ministry.
The Central Bank of Samoa had also warned members of the public that pyramid schemes are illegal.