7 friends demand $500,000 repayment in alleged Ponzi scheme

A well-known social media influencer is facing a possible lawsuit after seven people claimed they were enticed into entering a Ponzi/pyramid scheme because of the high returns it offered.

The seven, all friends and family, want a full and final settlement of $550,000 by May 10 to avoid costly litigation. The demand came in a pre-action protocol letter sent by the attorneys for the seven.

Attorney Kamini Ramraj, who represents the seven “investors,” said they were introduced to a scheme represented as a sustainable no-risk wealth-creation opportunity and made their initial contribution of $25,000.

“The primary benefit of this membership was a ‘monthly cashback’ of ten per cent of the membership value, with such cashback being payable at the end of every calendar month.”

The letter also said there was a referral programme which would see members receiving a bonus payment of $10,000 for every $100,000 paid into the membership. One of the seven, “bolstered” by early returns, paid another $75,000 into the scheme and also referred family and friends, some of whom, the letter added, paid $100,000 to get the bonus payment.

The letter said after June 2023, none of the seven received further payments from the social media influencer, his company or two others, associated with the scheme, named in the letter.

The letter said after demands were made for payment, by legal letters, references to “membership” payments changed to “investments.”

It further noted that a WhatsApp group was also closed after multiple complaints and alleged threats were made.

“Accordingly, the intended claimants waited their turns and submitted requests to have their money returned to them in accordance with the ‘membership agreement.’”

The letter warned that the seven intended to file a fraud claim. It also warned that others associated with the scheme were likely to be joined as interested parties to the claim.