The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

A well-known Bahamian accountant yesterday praised the Government for moving to outlaw Ponzi-type frauds while highlighting the challenges of successfully prosecuting perpetrators.

Craig A. 'Tony' Gomez, the Baker Tilly Gomez partner, told Tribune Business it would likely be difficult to identify fraudsters operating behind the anonymity of their computer screens while the authorities will also face practical difficulties in hauling the foreign masterminds of such scams before the Bahamian court system.

While this also created difficulties when it came to recovering defrauded victims' monies, Mr Gomez nevertheless praised the Government and Parliament for "doing what they're supposed to do" in outlawing pyramid and Ponzi-type frauds as well as advance fee-type schemes via the new Financial and Corporate Services Providers Bill 2020.

Revealing that he had in the past been "approached from every level of society" - including "MPs and the political class" - for advice on whether to invest in such schemes, Mr Gomez urged that the Bill be accompanied by greater education so that Bahamians could detect the warning signs and avoid becoming victims.

"It's good that these schemes are now outlawed in The Bahamas, and persons have a basis to go to court and be able to identify the perpetrators and haul them before the justice system," the Baker Tilly chief told this newspaper. "The Government has done what it's supposed to.

"However, I am not certain how we catch them because, more often than not, perpetrators come via the e-mail and social media and this is not known publicly unless the victims make it known to law enforcement. It's not like they advertise it. It's done privately and one on one.

"These schemes are almost always run from beyond the border. It will be difficult, but does not mean Parliament and the Government should not do what they did, and make it an offence in The Bahamas."

Several such schemes, including Pineapple Express Asue Holders and Lamont Pays the Bills, have been run from within The Bahamas over the years, and the legal reforms unveiled this week should provide a greater degree of protection and recourse against these.

Mr Gomez, meanwhile, called for more education to ensure Bahamians are able to detect signs of a financial scam. "At the end of the day, it's a matter of awareness," he told this newspaper. "It is a matter of educating our community and citizens about this process. Something that sounds too good is too good.

"Over the years it's been my experience, and I've been approached from every level of society - from members of the political class and MPs - having received contacts from outside The Bahamas saying there are fantastic sums to be had had if they just send $1,000, a few thousand dollars. I'm aware of business people who have fallen prey and become victims of this approach."