Finland’s NBI to continue monitoring OneCoin
Back in June BehindMLM reported that OneCoin was under police investigation in Finland.
The investigation, headed up by the National Bureau of Investigation (NBI), sought to establish whether or not OneCoin was operating in Finland as a pyramid scheme.
After months of quiet it was announced last week that the results of the NBI investigation were to be made public this Wednesday.
The report has since been published sometime in the last few hours, with the NBI not taking further action against OneCoin at this time.
The NBI’s investigation into OneCoin established that
OneCoin’s operations are managed from Bulgaria.
Considerable sums of money (from Finland) are paid into the company’s bank accounts for training packages.
The NBI do not elaborate further on what OneCoin do with funds invested, suggesting they weren’t able to obtain that information.
That in itself is not surprising, considering OneCoin likely use banking channels in Asia.
Upon the NBI completing their preliminary investigation, further action now appears to be in the hands of the Prosecutor’s Office.
The Finnish Prosecutor’s Office has examined the National Bureau of Investigation’s report.
As per Chapter 3 of the Criminal Investigations Act, § 3. and on the basis of (the NBI’s) investigative material, (the Prosecutor’s Office) will look into wheither it (OneCoin) is associated with criminal activity.
(This) can be reliably estimated after publication (of OneCoin’s source-code), which is likely to happen by the end of 2016.
The last sentence of the translation above suggests that criminal activity is present, but further investigation is required.
As to the crypto-currency source code. It has no bearing on ROIs paid out by OneCoin. A cryptocurrency script in and of itself does not generate ROI funds.
In OneCoin, those funds are sourced from newly invested affiliate funds – making OneCoin a Ponzi scheme.
The NBI meanwhile explain that, based on their own preliminary investigation, they currently don’t have enough to take the case further.
Accordingly, the NBI (KRP) will continue to monitor OneCoin’s activities.
KRP will continue with relevant information gathering utilizing the domestic and international intelligence channels. Should the situation change, the matter will be reviewed.
National Bureau of Investigation calls for the utmost caution with the participation of these types of opportunity because they are associated with difficult to anticipate economic and criminal risks.
(In the) National Bureau of Investigation’s view, the promise or expectation of an oversize yield are not realistic.
Realistic or not, the implied promise of “oversized yields” is exactly why purportedly thousands of OneCoin investors have dumped millions of dollars into the scheme.
I suspect a large factor in the NBI’s decision is the fact that OneCoin has no formal business or banking operations in Finland.
As they state, the company is based out of Bulgaria. The exact nature of OneCoin’s banking operations is unclear, but we do know murky banking channels in China play a significant role (owing to the region being a primary source of new investment into the scheme).
Owing to these murky banking channels, complaints about lengthy withdrawal times are a staple on OneCoin’s Facebook page:
Dr Ruja madam now with draw is taking so much time. from last one month withdraw is not taking place.. no response is getting from support. plz look into matter seriously. (October 29th)
Other comments discussing OneCoin withdrawal problems that were published last I checked OneCoin’s Facebook page, have since been deleted.
If the NBI pressed the matter further at this time, it is unlikely to have an effect on OneCoin’s global business operations. Of note is the mention of “international intelligence channels”, which suggests OneCoin is already be on the regulatory radar of other countries.
Owing to the secretive nature of regulatory investigations however, obviously no further specifics are available at this time.
In any event, from the sounds of it Finnish Public Prosecutors suspect criminal activity and their own investigation continues. I imagine whatever comes of that will be limited to prosecution of local Finnish promoters of OneCoin when the time comes.
For now, OneCoin’s gobal Ponzi fraud continues…