Hungarian National Bank Uncovers Huge Ponzi Scam
- 1 Sep 2014 9:00 AM
The MNB has levied a Ft 1.25 billion fine on a group of companies and one individual for running what amounts to a large-scale Ponzi scheme. Authorities seized Ft 1.5 billion from the accounts of Zsolt Szabó-Forrai, the mastermind of the scam.
He operated companies Fortress Holding, Flow Money and Flow Money Int., in part by abusing the name and logo of US company Fortress, promising a 9% return to investors.
As interest rates are now low, people are looking for alternative investments and are more susceptible to fraud, said MNB deputy governor László Windisch.
Source: Hungary Around the Clock
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