The Financial Services Commission (FSC) says Warner Jamaica Media Limited, the entity that reportedly fleeced some 50,000 citizens out of millions, was not licensed under the Securities Act to operate locally.

The FSC, in a recent statement, reminded the public that to conduct securities business, persons or entities must be licensed and a failure to be licensed is a breach of the Securities Act and a criminal offence.

Several Jamaicans were reportedly lured into the online investment scam after being promised substantial returns on their cash investments in a short time.

“Schemes or opportunities which involve the payment of initial sums, with returns being based on the returns from recruitment of new members, and in the absence of any underlying legitimate investment activity are hallmarks of fraudulent Ponzi/pyramid schemes and scams. The organisers of these schemes often attract and solicit new investors by promising to invest funds in opportunities claimed to generate high returns with little or no risk,” the FSC warned.

It said in most cases there is no underlying legitimate investment activity. Instead, the fraudulent actors focus their energies on soliciting new money and getting new investors to make promised payments to earlier investors, as well as to divert some of the invested funds for personal use.

The investment regulator says it has since initiated an investigation into the entity and will be collaborating with other law enforcement bodies in instances where there are indications of fraud and money laundering.

It further encouraged members of the public who have invested funds with the entity and or have knowledge of the entity’s operations to contact the FSC at [email protected] or at 876-906-3010-2.