Police arrest 487 QNET Ponzi scheme members in Kumasi

According to the police, “Preliminary investigations established that the suspects, through the scheme, successfully enticed unsuspecting persons from various parts of the country under the guise of offering lucrative returns on their investments.” The raid uncovered registration documents and other materials bearing QNET logos, further implicating the suspects in the fraudulent scheme.

Among the arrested individuals, twelve have been identified as executives of the scheme. They are Gyereh Evelyn, Francis Kpesah, Samuel Musah, Simon Yakubu, Thomas Kotual, Kwasi Nyabi, Benjamin Nsigma, Elijah Musah, Moses Katu, John Balabon Tagnakibi, James Nogma, and Fidelis Bang-ib. “They are currently in Police custody assisting the investigation,” the law enforcement agency stated in a release on Tuesday, 3rd September.

The police have urged the public to be vigilant and report any suspicious activities related to Ponzi schemes. “We would like to take this opportunity to urge the public to be wary of such schemes and report such activities to the Police,” the statement emphasised.

This operation marks a crucial step in the fight against financial fraud in Ghana, as authorities intensify efforts to dismantle illegal schemes that prey on vulnerable individuals.

In November 2022, the Attorney General, Godfred Yeboah Dame initiated legal action to close down Q-net in its operations under Section 84(2)(d) and (e) of the Corporate Insolvency and Restructuring Act, (Act 1015), arguing that the company was involved in illegal activities beyond its registered purpose. The AG requested three specific reliefs: an official order to wind up the company, a restriction on the members, directors, and officials from exercising powers related to the company’s stated business, and a declaration that Q-net’s operations were contrary to the national interest.

In his petition, Mr. Dame asserted that Q-net was engaged in criminal activities or conducting business not authorised by its constitution, which posed a threat to national security. The court documents revealed that Q-net had been registered for various business activities, including mining, oil and gas, real estate, farming, transportation, construction, import and export, and civil engineering.

The AG highlighted that Q-net was part of a global marketing network owned by Quest International or QI Group, headquartered in Hong Kong, with offices across West Africa, including Ivory Coast, Nigeria, Mali, and Ghana. The Ghanaian branch, according to the AG, was largely dominated by nationals from Togo, Ivory Coast, Nigeria, Burkina Faso, and Mali.

In the petition, the AG pointed out that numerous victims of Q-net’s fraudulent activities were located in the Bolgatanga Municipality, where community leaders and traditional authorities had raised concerns about the security risks posed by the company’s operations.

The Attorney General argued that Q-net’s activities, which diverged significantly from its registered purposes, constituted a serious threat to the peace, economic, and social stability in Ghana, necessitating the company’s dissolution to protect the national interest.

Q-net failed to respond to the court proceedings, and the AG presented corroborative statements from two witnesses who detailed the damaging effects of Q-net’s activities in the Upper West Region. The victims had been deceived with promises of non-existent jobs in the oil and mining sectors and were defrauded of amounts ranging between GH¢5,000 and GH¢15,000.

Justice Jennifer Dadzie, who presided over the case, ruled that the funds obtained by Q-net through its activities were proceeds of crime. The court also determined that the company’s failure to clarify the nature of its operations and the use of the funds strongly suggested that it was engaged in illegal or improper conduct.