Rwanda Investigation Bureau (RIB) says it has in custody two women alleged to be masterminds of a multi-million pyramid scheme that was busted in May.
The duo has been identified as Nadine Rugwiro and Laetitia Nyirabashongore, both from Rusizi District, where the alleged offence was largely committed.
According to Thierry Murangira, the Spokesperson of RIB, the two were arrested on July 4 from Ndera Sector in Gasabo District.
Murangira said the women had been on the run since May when they were identified as the alleged masterminds of the scheme in which many people funnelled varying amounts of money on the promise that they would get manyfold what they had ‘invested’.
Pyramid schemes are illegal in Rwanda and RIB says the two women lied to people that theirs was just ‘ikimina’ (a saving group).
It’s known as ‘Ujamaa Turemerane’.
According to RIB, the women collected over Rwf25 million from more than 40 people.
Murangira said the suspects are being detained at Remera Police Station pending the submission of their case file to prosecution.
He appealed to the general public to be vigilant and not be exploited by people who come to them with suspicious proposals promising them abnormal profits.
"Ibimina are allowed. However, people have to differentiate them from pyramid schemes and there are different things that might help someone to spot a pyramid scheme, such as the requirement that to make money you must recruit members and so on,” Murangira said.
To help people detect a pyramid scheme, The New Times has previously published two articles about the same.
Murangira added that there are several related ongoing cases, adding that they take time to get to the masterminds because of the long chain of people involved.
What the law says
The law characterises pyramid schemes as fraud.
Any person who, by deception, obtains another person’s property, whole or part of their finance by use of false names or qualifications, or who offers positive promises or who threatens future misfortunes commits an offence, according to article 174 of law determining offences and penalties in general in Rwanda.
Upon conviction, they are liable to imprisonment for a term of not less than two years and not more than three years, and a fine of not less than Rwf3 million and not more than Rwf5 million.
"If this offence is committed by a person who intends to issue shares, securities, bonds, vouchers or any other cash value, either for business company, trading company or industry, the applicable penalty is imprisonment for a term of not less than three years and not more than five years with a fine of more than five million and not more than seven million Rwanda francs,” reads part of the article.