Central Bank warns of Ponzi scheme targeting Barbadians

The Governor of the Central Bank issued a stark warning about a suspected Ponzi scheme operating in the country, after investigations revealed that a company calling itself TKY Media has no legal registration despite actively recruiting members with promises of quick earnings.

Dr Kevin Greenidge told a press conference on Wednesday the organisation exhibited “all of those red flags” of a fraudulent scheme, including demands for upfront payments and promises of excessive returns for minimal effort.

“Avoid them,” he advised in response to questions from reporters during his quarterly economic briefing. “The overarching thing is, there are no get-rich schemes around the place. Usually, the persons who are purporting get-rich schemes are using them to get rich.

You are not getting rich, I can guarantee that.”

The TYK Media scheme, which presents itself as a YouTube and TikTok partnership, requires participants to pay approximately $700 to advance beyond an initial threeday probationary period. New members are promised earnings of $2.50 daily for making five clicks in designated spaces, with claims of increased earnings of US$10 ($20) daily at “level two”.

Internal investigations by the Central Bank revealed no such company exists, though a name has been registered with the Corporate Affairs and Intellectual Property Office (CAIPO). The matter has been referred to the Fair Trading Commission (FTC).

“We checked with CAIPO and there is no such company. There is a name registered, but there is no such company,” Greenidge said.

“So, we have passed all the information we have gathered to our sister regulator, the Fair Trading Commission . . . and they will do the necessary investigation,” Greenidge revealed.

His comments came two days after the Financial Services Commission (FSC) issued an urgent warning about multi-level marketing schemes.

Speaking in his personal capacity, the central bank governor outlined three warning signs of Ponzi schemes: requirements for upfront payments, recruitment of new members to sustain payments, and promises of excessive returns for minimal work.

His signature had been fraudulently used on a letter endorsing a scheme, but he stressed that the Central Bank “does not endorse anybody”, and any claim of Central Bank endorsement should be treated as an attempt to deceive potential investors.

“I want persons to be financially savvy.

Ask questions, research who brings it to you, don’t go and ask people who they tell you to ask,” he advised, recommending legitimate investments such as real estate, education, government bonds, and stock market enterprises instead.

Greenidge stressed that legitimate financial institutions must undergo rigorous licensing processes through the Central Bank and CAIPO before establishment.

“If an institution, financial company or bank wants to set up, there is a process by which you apply to the central bank, you must have a company licensed under the Company Act through CAIPO,”Greenidge said.

Meantime, in a separate statement on Wednesday, CAIPO said that registering a business name does not authorise or legitimise illegal activities, including pyramid schemes, fraudulent operations, money laundering, or any other unlawful conduct.

“Registering a business name is an administrative process that provides businesses with legal recognition to operate under a specific name. However, it does not serve as a licence or approval for any activity that contravenes the law,” CAIPO said.

It cautioned that fraudsters often misuse registered business names to appear legitimate, deceiving individuals and organisations into participating in scams: “These unscrupulous individuals register legitimate activities but then use the registration as a cover to engage in illicit dealings.”

Acting Registrar at CAIPO, Tamiesha Rochester, reiterated that while business registration provides formal recognition, “all businesses must comply with the law and operate ethically”.(EJ)