China's c. bank issues 495.8b yuan off reverse repo    European shares climb as EU-US trade deal lifts markets    Indian Embassy to launch cultural festival in Assiut, film fest in Cairo    Egypt, South Africa pledge to deepen development cooperation at G20 meeting    Egypt's PM orders road maintenance review, tougher penalties to curb accidents    Egypt, Novartis explore expanding collaboration in oncology, cardiology    Egyptian aid convoy heads toward Gaza as humanitarian crisis deepens    EU, China agree on rare earths, climate but divisions remain on trade, Ukraine    Association of Real Estate Developers seeks urgent meeting over threatened land deallocation on Northwest Coast    Midar partners with Adeer to develop Boulevard project in Mostakbal City with EGP 70bn investment    Iran launches mass deportation of Afghans amid spying allegations    Over 60 million visits recorded under Egypt's Women's Health Initiative since 2019    Culture minister launches national plan to revive film industry, modernise cinematic assets    Thailand, Cambodia clash on new front as tens of thousands flee    Sudan's ambassador to Egypt holds reconstruction talks on with Arab League    UK pay settlements stagnant amid inflation surge    I won't trade my identity to please market: Douzi    Egypt welcomes 25-nation statement urging end to Gaza war    Sisi sends letter to Nigerian president affirming strategic ties    Egypt, Senegal sign pharma MoU to unify regulatory standards    Two militants killed in foiled plot to revive 'Hasm' operations: Interior ministry    Egypt, Somalia discuss closer environmental cooperation    Egypt foils terrorist plot, kills two militants linked to Hasm group    Egypt's EHA, Huawei discuss enhanced digital health    Foreign, housing ministers discuss Egypt's role in African development push    Egypt reveals heritage e-training portal    Three ancient rock-cut tombs discovered in Aswan    Sisi launches new support initiative for families of war, terrorism victims    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Egypt's Irrigation Minister urges scientific cooperation to tackle water scarcity    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Police arrest 'Rayan Al-Qalyubia'
Published in Daily News Egypt on 13 - 12 - 2007

CAIRO: A widely-reported pyramid scheme scandal came to an end after police arrested the man who swindled LE 180 million from 2,000 citizens in Al-Qalyubia.
The victims had invested their money in the Qalyubia-based company, which offered higher interest rates than banks. But the investors were neither able to obtain the interest rate regularly nor were they able to get their money back.
He was dubbed "Rayan Al-Qalyubia by the media due to the resemblance between his case and the infamous 1980s' scam masterminded by Ahmed El Rayan, who was accused of collecting money from citizens for high-interest rate investment, but failed to provide the investors with regular revenues or return the money.
After the original Rayan incident, the government made illegal all types of investments that could turn into "pyramid scheme scenarios.
Ahmed Al-Sayed, lawyer, told Daily News Egypt that the penalty for involvement in "pyramid schemes could reach 15 years in jail. However, if the scammer returns the money, he's acquitted immediately. "If he is still under investigation, he is released. If he has already stood trial, the sentences are dropped.
Al-Sayed explained that people are tempted to invest in such companies even though they are not registered legally. "The owners of these 'pyramid scheme companies' would announce secretly that they will offer special profit rates, either fixed or dynamic, to lure potential victims, Al-Sayed said.
These transactions are not registered with any official authority, preventing people from making legal claims for their money, he added.
These companies are not involved in any service-providing or production activities, he continued. They usually work under the umbrella of other legally registered companies.


Clic here to read the story from its source.