US-based pyramid scheme dupes 50,000

Based on complaints from more than 100 investors who had put their money in US-based Colony Invest, Piyawat said the firm had stopped paying dividends to investors since last November, shortly before its two websites  - www.colonyinvest.com and www.colonyinvest.net - shut down.

A doctor, who had lost Bt5 million to the scam and did not want to be identified, said he later found out that a phishing technique had been employed to lure local investors from many countries in the region into believing it was a legitimate operation by Colony Invest, which was based in Rochester, New York.

The DSI official said arrest warrants had been obtained for three Thai suspects allegedly involved in the scam. A number of foreigners who used to run the websites, including webmasters and Web technicians, had been identified and arrest warrants for them would also be issued soon.

In its advertising campaign, Colony Invest claimed it had ventures in real estate, information technology, stock markets and foreign exchange. The operation was launched last year in Pattaya at an enthusiastic press conference, which convinced Thai investors it was a legitimate online investment firm.

Piyawat said the investors swindled by the company ranged from farmers, engineers and doctors to high-ranking government officials. There might be others who have yet to come forward, he added.

There were three investment plans with Colony Invest, with the most lucrative package promising to pay US$3,000 (Bt93,000) in interest for every US$1,000 or US$10,000 invested every 100 days, while the principal would be returned to the investors at their choice.

The Nation