Organizer of pyramid scheme sent to jail in Odesa

In Odesa, the organizer of a fraudulent scheme disguised as an investment company and promising clients up to 20% profit per month was sentenced. According to the case file, dozens of people lost hundreds of thousands of hryvnias due to the pyramid scheme.

This was reported by the Center for Public Investigations.

Investigators found that the scheme operated under the brand of the so-called BillMill+ investment company. Its organizer launched the activity in the fall of 2022, and it functioned almost until the spring of 2024 according to the classic principle of a pyramid scheme.

Law enforcement officers found out that the man was not affiliated with the officially registered company "BillMill+", but used its name and details, creating the impression of a legitimate business.

The scheme rented an office in the center of Odesa, where they negotiated with potential investors, signed agreements and accepted cash. To search for new investors, they actively used advertising, presentations, and the Legacylife telegram channel, which disseminated information about allegedly successful investments and high incomes.

In addition, the organizer held meetings and presentations at the Black Sea Hotel, convincing citizens to invest in the project. To maintain trust, some participants were paid so-called dividends, but these funds did not come from real activities, but from contributions from new customers.

Potential investors were offered contracts with a yield of 10 to 20% per month, promising a full return on their investment after the end of the investment period. In fact, new contributions were used to pay out previous participants, which is a typical sign of a pyramid scheme.

The criminal proceedings involve dozens of victims. People transferred several hundred to thousands of dollars and euros to the organizers, and some, having received the first payments, invested even larger sums, believing the project to be reliable. Some investors lost hundreds of thousands of hryvnias.

During the trial, the court examined numerous cases where investors repeatedly brought in money after receiving small payments. It was this scheme that allowed the pyramid scheme to continuously attract new funds and maintain its operation. Subsequently, the payments stopped, and people never received their deposits back.

Following the trial, the court found the defendant guilty of fraud and sentenced him to seven years in prison with confiscation of property.

At the end of May, an international fraud scheme involving call centers, artificial intelligence, and crypto wallets was exposed in Odesa. According to the investigation, the victims of the fraud were citizens of Kazakhstan, who were persuaded to voluntarily transfer access to their bank accounts.

Анна Бальчінос