It is now illegal to establish, operate, advertise or participate in Ponzi and pyramid-type schemes. If a person is convicted, they can be fined $10,000,000.00 or up to 10 years imprisonment.
According to a press release from the Trinidad and Tobago Securities and Exchange Commission, amendments to the Securities Act criminalises any ‘prohibited schemes.’
The following is a press release from the Trinidad and Tobago Securities and Exchange Commission:
Trinidad and Tobago Securities and Exchange Commission advises the public of certain amendments to the Securities Act Chapter 83:02 (“the Act”) of the Laws of the Republic of Trinidad and Tobago.
A new Section 165A has been inserted after the existing Section 165 of the Act to provide for the criminalising of any ‘prohibited schemes’, namely Ponzi and pyramid-type schemes.
Under the amended Act, it is now a criminal offence to establish, operate, advertise or participate in these prohibited schemes.
It is now also an offence to invite persons to join a prohibited scheme. The Act further provides that a person who establishes or operates a prohibited scheme is liable, if convicted, to pay a fine of $10,000,000.00 or to imprisonment for 10 years. It also states that a person who knowingly participates in a prohibited scheme is liable, if convicted, to pay $5,000,000.00 or to imprisonment for 5 years.
For knowingly advertising or inviting another person to join a prohibited scheme a person is liable, if convicted, to pay $2,000,000.00 or to imprisonment for 3 years.
