Justice has shut down a vast fraud operation based on a pyramid sales scheme in Mahajanga. The case stems from the arrest of two hundred forty-five people earlier this month. They were engaged with the company Infinity Millennials, known as QNET. Eleven of them have been remanded in custody following their arraignment before the prosecutor last Friday in Mahajanga, while an Ivorian and a Comorian are subject to arrest warrants issued by the Anti-Corruption Unit (PAC). These two have managed to flee. André Andrimpiderana, prosecutor at the Mahajanga court of first instance, explained the reasons for these arrests and the alleged functioning of this fraud scheme.
"These eleven people held in provisional detention are the primary direct perpetrators of this fraud. Their role is proven. They knew full well this was a scam, yet deliberately drew victims into it. The operation involved recruiting multiple people into the network. They had to pay an entry fee of 3,650,000 ariary per person in exchange for promises of recruitment for employment or studies abroad. Then they forced candidates to sell QNET products imported from Malaysia that were not immediately available. Goods were supposed to arrive within four to eight weeks, but ultimately nothing arrived. It was just a facade. If a candidate managed to enroll two people, they earned a commission between 50,000 and 500,000 ariary. And so on. The commission reached 1,100,000 ariary for six new members recruited by one person, but always in exchange for paying the 3,650,000 ariary fee. Ultimately, the recruiters paid nothing but used members' money," the prosecutor explained.
Vicious Cycle
Pyramid sales rest on a system where money comes primarily from recruiting new members rather than actual product sales. Early joiners earn income from fees paid by newcomers. The organizer demands an entry fee or membership and promises quick gains in exchange for recruiting others. Each new member must in turn recruit other clients hoping to recover their investment. Money from new entrants thus serves to pay those higher up in the structure.
On August 1st, thousands of Infinity Millennials (QNET) Fitm Fiofio members demonstrated at the Tourist Village square to protest the arrest of two hundred forty-five colleagues. They deemed the arrests unjustified and demanded the right to continue their activities. Protesters displayed a banner calling for their colleagues' release. Legal proceedings continued nonetheless. This wave of arrests followed numerous complaints received by authorities. Investigations are ongoing and justice warns citizens against participating in such fraudulent activities.
Vero Andrianarisoa