The owner and chief executive of alleged Ponzi scheme company, Menzgold, Nana Appiah Mensah, has been arrested in Ghana.
He had arrived in Accra from Dubai on Thursday but was quickly arrested by police officials.
Appiah Mensah had operated a company that deals in gold purchases with thousands of Ghanaians investing in it.
The customers of gold trading firm, Menzgold Ghana Limited were unable to access their locked up funds since 2018.
The gold firm has been struggling to pay premiums of its investors after receiving orders to stop public gold trading activities.
It sparked protests across the country with victims fearing not being able to get back their investment.
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Style of operation
Menzgold’s business module involves buying gold and subsequently paying interests to investors in Ghana. Investors were to gain 10 percent on their investments monthly.
Ghana’s central bank has said that the company continued to operate despite warnings to stop taking deposits from customers.
Ghana’s Securities and Exchange Commission (SEC) says the company did not have license to undertake such a trade.
Efforts by the customers on several occasions to get back their monies yielded no results.
The owner Appiah Mensah for months was detained in Dubai on issues related to his company’s involvement in gold trading.