A 48-year-old man from Panadura has been taken into custody by authorities on suspicion of operating and actively promoting an illegal pyramid financial scheme, police confirmed.
Suspect Apprehended
The suspect, a resident of the Panadura area in the Western Province, was arrested following an investigation into fraudulent financial activities that are believed to have targeted unsuspecting members of the public.
Pyramid schemes, which are illegal under Sri Lankan law, typically lure victims with promises of high financial returns in exchange for recruitment of new participants, with no legitimate underlying business or investment activity to sustain the payouts.
How Pyramid Schemes Operate
Authorities have repeatedly warned the public about the dangers of such schemes, which tend to collapse once recruitment slows, leaving the majority of participants — often ordinary citizens — with significant financial losses.
- Participants are promised high returns for recruiting new members
- Early entrants may receive payments funded by later recruits
- The scheme inevitably collapses, causing widespread financial harm
- Organisers and promoters face criminal liability under Sri Lankan law
Investigation Ongoing
The arrested individual is alleged to have both operated and promoted the illegal scheme, suggesting an active role in drawing in victims. Investigations remain ongoing, and authorities have not ruled out further arrests in connection with the case.
Members of the public are urged to exercise extreme caution before participating in any financial scheme that promises unusually high returns and requires the recruitment of others to generate income.
The suspect is currently in police custody, and the case is expected to be referred to the relevant authorities for further legal proceedings.
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finally caught. how many victims lost money though
my cousin lost 150k in one of these schemes last year