How People Were Tricked Into Malicious Diamond Trading & Were Swindled Out of 240 Million
The diamond trading industry is another example of shady boiler room operations, in which unsuspecting victims are duped into investing their hard-earned money to receive astronomically high returns.
Technical jargon, fake websites, and impressive job titles are used in a high-end diamond scam to entice victims into what will eventually turn out to be a pyramid scheme. People take advantage of the diamond trading market as it is one of the less transparent markets.
As a result, it is vulnerable to con artists’ manipulation and deception. Pay Diamond is a company that has been accused of defrauding people by asking them to join its diamond investment scheme.
Gilgit-Baltistan residents put around Rs 240 million into this bogus online company called Pay Diamond. 700 people have already invested in it. Some politicians and retired government officials are among the investors.
People were attracted to the company because it offered a high rate of return, prompting them to invest without first checking its legal status. According to the police, Pay Diamond has been accused of defrauding several people.
It’s beyond their comprehension why that website hasn’t been taken down. The company is based in Manitoba, one of the few places where precious stone investment is unregulated.
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What is a Forex Scam?
As of April 2019, the spot forex market, which includes currency options and futures contracts, traded over $6.6 trillion daily.
With such a large amount of money floating around in an unregulated spot market that trades instantly, over the counter, and with no accountability, forex scams entice unscrupulous operators to make quick money.
While many once-popular scams have faded thanks to the Commodity Futures Trading Commission’s (CFTC) aggressive enforcement actions and the formation of the self-regulatory National Futures Association (NFA) in 1982, some old scams persist, and new ones keep cropping up.
Many trading systems have traditionally been quite expensive, costing up to $5,000 or more. This could be considered a ruse in and of itself. Today, no trader should spend more than a few hundred dollars on a good system.
Be especially wary of system sellers who charge exorbitant prices in exchange for a guarantee of spectacular results. Instead, look for legitimate sellers who have thoroughly tested their systems so they can potentially earn money.
The commingling of funds is another persistent issue. Individuals cannot track the actual performance of their investments without a record of segregated accounts. This makes it easier for retail firms to pay exorbitant salaries, buy houses, cars, and planes, or simply disappear with investors’ money. This is what happened in the case of Pay Diamonds!
History of the Company and Scam Case
Pay Diamond is a fictitious company based in Gilgit-Baltistan that has already attracted much public funding. It is said to buy raw diamonds from mines and polish them into one’s ready to sell.
PayDiamond also has a multi-level marketing program, but the company does not rely on it to pay its members. It had been in business for over three years and was allegedly the only company that continued to pay members without requiring them to build downlines.
PayDiamond’s MLM program claims to be one of the most reliable MLM programs in the world. Pay Diamond is a Ponzi scheme and a recruitment scam that claims to offer a golden investment opportunity for those who want to earn attractive weekly returns.
Pay Diamond is said to be a company that buys, processes, and sells diamonds to share profits with its recruits at a reasonable price.
How The Scam Came Into Play
To begin with, the foundation on which this company operates is that it combines multi-level marketing with a high-valued product that has high liquidity 24 hours a day, seven days a week.
To take part in the Pay Diamond investment scheme, one must have purchased a package that would pay you a 5% weekly bonus for the next 50 weeks. According to the company, one investment cycle is 50 weeks.
When this period ends, one can use their accumulated bonuses to purchase another package, and so on. Pay Diamond encourages its members to buy more packages during any investment cycle. After all, it’s only “logical” to invest more money to earn more commissions.
Investors are informed that their funds will be used to purchase raw diamond stones of equal value when they purchase a package. After that, the natural stone is said to go through a series of steps, including polishing.
The diamond market values increase up to 6 times their initial value after the processes, and this is where the income is generated, which is used to pay members.
At this point, PayDiamond is said to assist the investors in placing their diamond on the market for sale. As a result, the investors will begin receiving a weekly bonus of 5% of the package we purchased for up to 50 weeks, as follows:
- Joy $200.00 – pays you 10$ weekly
- Light $400.00 – pays you 20$ weekly
- Kit diamond -$500.00 – pays you 25$ weekly
- Plus $1,200.00 – pays you 60$ weekly
- Master $3,600.00 – pays you 180$ weekly
- Safe $18,000.00 – pays you 900$ weekly
PayDiamond promised to pay investors a weekly bonus for up to 50 weeks, but at the 25th week, investors can choose to have their diamond shipped to them or keep receiving their weekly bonuses for the remaining 50 weeks.
Furthermore, investors have the option to upgrade from one package to another at any time. PayDiamond offers a variety of bonuses to MLM participants.
Binary, Team, Qualification, Unilevel, and Signup bonuses are among the available packages. All they had to do was register as a member, purchase a package, and begin earning weekly bonuses.
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Complaints Lodged Against Pay Diamond
It’s clear from the above data that this is a sophisticated blend of ‘diamond trading’ and multi-level marketing. This is essentially a pyramid scheme.
In fact, the claim that this company trades diamonds in order to distribute profits to its members is dubious at best. Perhaps diamond isn’t at all involved. Perhaps the company is only collecting funds from the general public in the name of diamond investment when this is not the case.
The pyramid scheme will eventually collapse when low-tier members stop funding the sharks at the top. Furthermore, there is no indication on this website whether or not they are diamond dealers.
Most people who trade diamonds for profit do so through a professional. That is the only way to ensure that you are being charged fairly. Selling the stones comes with its own set of difficulties. It entails haggling with an expert.
Pay Diamond’s “specialist status” cannot be verified, which is a problem. A lack of strict regulations is also to blame. The people who run Pay Diamond are ruthless and anonymous.
They hide behind a computer or phone when they target naive investors who have heard that diamond investment is the new “get rich quick” scheme. It’s worth noting that Pay Diamond has a bad reputation with the local authorities.
According to reports, the local Police Service, in collaboration with the Manitoba Securities Commission (MSC), issued a warning against joining Pay Diamond. Authorities claim they have sufficient evidence that this website is engaged in a pyramid scheme rather than legitimate diamond trading.
There is also a great deal of misunderstanding because this company originally stated that it was based in Hong Kong, then Manitoba, and now Gilgit-Baltistan. It is possible to prove that Pay Diamond is a pyramid scheme.
The above-mentioned business model encapsulates everything. Victims contribute to a pool of funds, hoping to profit from it. The issue of diamond investment is then raised as an excuse for investors never to question where their profits will come from at the end of the week.
The truth is that you may only be paid once or twice because these types of scams can last for months before coming to a halt. Even if you are only paid a small portion of what you contributed, the owner will never lose money because he keeps the rest.
While they’re at it, they might persuade you to keep investing in order to increase your earnings. You’re likely to tell your family and friends about this “amazing new opportunity” you’ve discovered.
After all, you’ve already received your first paycheck. Pay Diamond’s team did an excellent job. Even if they only pay you a fraction of what you contributed and keep the rest, they will have made a significant profit from you. It’s no surprise that the local police have taken notice of this website. It denotes that things aren’t going well.
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Over 200 Million Was Stolen!
Any company conducting online business in Pakistan must obtain a license from the Over Rs200 million invested in a suspected online company, Pay Diamond, by as many as 700 people in Gilgit Baltistan’s Ghizer district.
The alleged illegal company received more than Rs30 million in commission and kickback from the investors as a result of the investment.
How the Ponzi Scheme Got Funded
According to sources, a company doing online business must obtain a license from Pakistan’s National Security Exchange Commission (NCECP), but Pay Diamond has received neither the license nor a timeline for investment.
In addition, the company lacks a proper structure. According to sources, the majority of its investors are retired government officers. In order to attract more investors and earn more commission, the company is continuing its house-to-house campaign.
Politicians, social workers, and people from all walks of life have called for an investigation into the firm, claiming that it should be allowed to operate if it was legal. They stated that the business is illegal and should be shut down immediately if this is not the case.
Local Authorities Were Alerted
Following reports in the regional press, local officials stated that the administration had noticed the company and issued directives for an investigation. He stated that no company would be allowed to plunder the people.
He directed the relevant authorities to track down and question the company’s responsible individuals. They promised that if the company was found to be fraudulent, it would be shut down immediately and that there was an urgent need to raise public awareness about fake companies.
He stated that it was the government’s responsibility to protect the public from fraud and to prosecute illegal and fictitious businesses. In 2017, the National Accountability Bureau (NAB) (Rawalpindi) arrested a representative of a fraudulent investment company, Big Board, in Karachi for a major financial fraud in Gilgit Baltistan.
Thousands of people in the United Kingdom were duped by the Karachi-based firm Big Board Advisory Service (Pvt) Ltd, which opened offices in various districts and promised a rate of return on investment of 18 to 36 percent per year for the period 2004–2005.
After a large number of its investors demanded a return on their investments, the company abruptly closed its offices in the area. Customers could open savings accounts at the firm, which operated similarly to a bank.
When government institutions, including the NAB, failed to apprehend the perpetrators, the affectees, who were mostly from the middle class – mostly retired government employees and farmers – lost hope of receiving the returns.
Official sources at NAB Islamabad told Pakistan Today that the accused, Abbas Haider Naqvi, the Chief Executive of Big Board Advisory Service (Pvt) Ltd, was arrested in Karachi, where the company’s headquarters are located.
They also revealed that the company’s directors deceitfully collected money from the general public by promising a rate of return ranging from 18% to 36% per year to 100% to 1500% for a 5-year investment. Scammers see opportunities to target us in these uncertain times. The Claimers can guide and support you. You can visit our news section for more guides.
Actions To Take In A Similar Situation & Avoid Being The Victim Of Pay Diamond
This may have been one of the largest Ponzi and forex schemes ever perpetrated, but it was essentially a con that cost 700 people Rs 240 million. A scandal that should have been exposed sooner thwarted their financial ambitions.
The Claimers is an information provider for scam-related topics, we assist individuals and organizations in attaining free information to avoid scams, protect their wealth, and recover funds that have been stolen.
The Pay Diamond heist resulted from a series of events involving dubious accounting procedures. This forex scam robbed people of their livelihoods and squandered their life savings.
Please contact us if you believe you have been defrauded of your funds. We have specialists at The Claimers who have been specifically trained to analyze the scam situation and give recovery firm recommendations accordingly.
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