Wednesday, August 19, 2009

Polish Ponzi scheme revealed in Great Britain, millions lost

There is a new potential financial scandal regarding a company called Digit Serve (DS), which was established in Great Britain by one of the most infamous businessmen of the 1990s in Poland, namely Boguslaw Bagsik.

The venture, controlled by the former creator of Art-B, has been operating as a type of financial ponzi scheme, similar to the fund of convicted criminal Bernard Madoff.

The company allegedly collected zl.41 million from numerous investors, but returned a sum of only zl.13 million and does not have the remaining capital. For over two years, DS has attracted over 120 people who invested sums ranging from zl.100,000 to zl.2.7 million.

According to Puls Biznesu, only a few had their funds returned, while most of the clients lost more than 50% of the invested money, and 50 clients lost everything they paid in. The prosecutor is investigating the issue and key decisions are to be made in September.