News

GFSC ban Ponzi scheme operator who is serving 20 years in prison!!!!

29/03/2021

The Providence scandal is a blot on the Islands' landscape, and the legal, regulatory and political response to date has been shocking. Lots of Channel Islanders (and investors further afield) lost their life savings in a regulated Guernsey scheme (Ponzi scheme!!) because many professional gatekeepers were asleep at the wheel. Why has there not been a public enquiry? 

GFSC take action - March 2021
  • On 4th March 2021, The GFSC took action against the perpetrators of the Ponzi scheme –
    • It Issued a £55,000 financial penalty on Mr Jose Eduardo Paula de Lima Araujo.
    • It prohibited the following from performing any function on behalf of a regulated entity.
      • Mr Jose Eduardo Paula de Lima Araujo. (Providence Managing Director – Brazil),
      • Mr Antonio Carlos de Godoy Buzaneli (Providence Founder and Chief Executive Officer) and
      • Mr Jose Manuel Ordoñez (Providence Chief Operating Officer)
What is the point?
Comsure look back
  1. Following one of the biggest Channel Islands financial scandals in recent times (yes, there are others!!), not a lot has happened, albeit Jersey did Jail one facilitator for 7 years.
  2. And what about Deloitte (as administrators) suing PwC for "negligence, breach of duty and breach of contract" in its role as auditor to the Providence fund.
  3. And what about the criminal investigation into Providence that was launched on Guernsey in October 2016, where four men were arrested on suspicion of fraud. I presume a Guernsey criminal investigation is grinding on in the background, or has it been silently dropped?

This story is a blot on the Islands' landscape, and the legal, regulatory and political response to date has been shocking.

https://www.comsuregroup.com/news/guernsey-justice-guernsey-criminal-ponzi-operators-fined-55k-and-banned/

GUERNSEY JERSEY