Published: December 20 2023
Recently, Budapest has taken action against the Falcon pyramid scheme that has cost Hungarians billions of forints. The scheme involved selling purchase vouchers and program contracts with unrealistic guaranteed yields, leading to financial losses for thousands of investors. The National Bank of Hungary (NBH) has conducted a probe and imposed fines, frozen assets, and filed a criminal report.
Falcon Pyramid Scheme Details
The Falcon pyramid scheme operated by selling "purchase vouchers" and "programme contracts" that promised excessively high guaranteed yields. At least 4,400 investors were affected, with the scheme collecting billions of forints from them.
NBH's Actions
The NBH has imposed fines on the companies involved in the Falcon scheme, as well as one private individual, amounting to a total of HUF 1.5 billion. These fines were imposed due to the companies providing unlicensed financial services. Additionally, the NBH has filed a criminal report on suspicion of fraud, falsifying public documents, and organizing a pyramid scheme.
Frozen Assets
As a result of the investigation, approximately 2.3 billion forints in assets have been frozen on Falcon accounts. This action aims to prevent further financial harm to the investors and ensure that funds are available for potential restitution.
Conclusion
The actions taken by Budapest against the Falcon pyramid scheme demonstrate the commitment to protect investors and combat fraudulent financial activities. With fines imposed, frozen assets, and a criminal report filed, efforts are being made to hold those responsible accountable for their actions.
Questions & Answers
What is the Falcon pyramid scheme? The Falcon pyramid scheme was a fraudulent scheme in Hungary where Falcon sold "purchase vouchers" and "programme contracts" promising unrealistically high guaranteed yields to clients.
How many investors were affected by the Falcon pyramid scheme? At least 4,400 investors were affected by the Falcon pyramid scheme.
How much money did Falcon collect from investors? Falcon collected amounts "in the billions" from investors.
Who investigated the Falcon pyramid scheme in Hungary? The National Bank of Hungary (NBH) investigated the Falcon pyramid scheme in Hungary.
What actions did the NBH take against Falcon? The NBH fined the companies and one private individual a combined HUF 1.5 billion for providing unlicensed financial services. Additionally, the NBH filed a criminal report on suspicion of fraud, falsifying public documents, and organizing a pyramid scheme.
Were any assets frozen in relation to the Falcon pyramid scheme? Yes, approximately 2.3 billion forints in assets have been frozen on Falcon accounts.
