Ponzi Schemes in the Caribbean

By Ana Carvajal, Hunter K Monroe, Catherine A Pattillo, Brian Wynter

April 1, 2009

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Ana Carvajal, Hunter K Monroe, Catherine A Pattillo, and Brian Wynter. Ponzi Schemes in the Caribbean, (USA: International Monetary Fund, 2009) accessed December 22, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

In several Caribbean states, unregulated investment schemes grew quickly in recent years by claiming unusually high monthly returns and through a system of referrals by existing members. These are features shared with traditional Ponzi schemes and pyramid schemes. This paper describes the growth of such schemes, their subsequent collapse, and the policy response of regulators, and presents key policy lessons. The analysis and recommendations draw on country experiences in the Caribbean, and in such diverse countries as the United States, Colombia, Lesotho, and Albania.

Subject: Banking, Currencies, Financial institutions, Financial regulation and supervision, Foreign exchange, Legal support in revenue administration, Money, Revenue administration, Securities

Keywords: Antiguan government, Business activity, Caribbean, Currencies, Government authorities close, Legal support in revenue administration, Ponzi scheme, Ponzi schemes, Public offering, Pyramid schemes, Securities, Securities regulator, Stay of execution, WP

Publication Details

Pages:

44
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2009/095
Stock No:

WPIEA2009095
ISBN:

9781451872422
ISSN:

1018-5941

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