A local fast money-making scheme operator in Lata has vowed to repay investments of his clients which he was unable to pay back since 2013.
Norman Bade, whose scheme “5 Golden Dreams” is based at Lata, Temotu, was unable to pay back those who’ve asked for refund.
He told this paper claiming he is working on alternatives such as exporting of timbers to raise funds for the payout.
“My first shipment for export next month and this would be sufficient for me to pay back my clients” Mr Bade stressed.
Around 2000 of his clients expects pay back of their investments. His clients have been waiting since December 2013.
Mr Bade said, he has already repaid some of his clients on their deposits.
All these payments stopped since December 2013 and Mr. Bade could not even refund their money.
Its not clear how much it would cost him to repay all his clients.
Mr. Bade went into the scheme since early 2013. His clients base includes many from Honiara where he promoted the scheme in its early days.
Like his clients in Lata, those in Honiara too have been left high and dry.
Mr. Bade said the situation arose because many of his clients have asked for refund.
The Solomon Star was reliably informed certain individuals invested up to $20,000 into the scheme in the hope of earning bigger interests.
But they have yet to be paid that interest.
5 Golden Dreams was the latest fraudulent scheme many have invested their life-savings in.
Thousands of people lost their savings in at least three schemes that emerged in Honiara, Auki, Gizo, and Kirakira in the mid-1990s.
Earlier this year, the Central Bank of Solomon Islands warned the public about a similar scheme operating in the Guadalcanal plains.
JJ Ark Investment is being promoted by a person by the name of John Pegoa who resides at GPPOL2.
Mr Pego operates his scheme from a shop he operates in the area.
The Central Bank said, JJ Ark is similar to the 5 Golden Dreams Investment that is being promoted in Lata, Noro and also in Honiara.
Perpetrators of these schemes have been asking people to pay in $250 for one ticket and expect a return of $5,000 within a week or two, a 1,900% return on investment.
The Central Bank said these are ponzi schemes that are giving false hope to the people.
“We have had many such schemes in the past where people lost their hard earned savings and are still recovering from their losses.
“Ponzi schemes are unfair schemes where funds paid in by those who are joining the scheme at the later stages will be used to pay off those who joined the scheme at the earlier stages,” the bank said.
By ELLIOT DAWEA