Gurkha investors who lost money in 'fraudulent' scheme urged to come forward

Hundreds of Gurkhas who may be victims of a suspected £50 million fraudulent Ponzi scheme are being urged to come forward by police.

Since October 2014, City of London Police have been investigating Capital World Market, based in the City, which was offering 5% interest per month to investors.

Detectives have heard from some potential victims of how they have invested sums from the thousands to the millions - seeing little or no return - but it is thought the majority of alleged victims were from the Gurkha and Nepalese community, and are yet to come forward.

Detective Chief Inspector Dave Manley said evidence suggests that hundreds of members of the Gurkha and Nepalese community may have been targeted.

%VIRTUAL-ArticleSidebar-scams-guide%He told the Press Association: "Out of the 450 Gurkha and Nepalese (alleged) victims that we believe may have invested, less than 1% from that community have come forward so far.

"The others are a large piece of the jigsaw that is missing - the harm caused to individuals, their families, their pension pots and life savings - at the moment is not being represented within the case.

"The story of how this has impacted and affected people needs to be told in the judicial process. It would be a shame for us to get to the next stage and the level of harm that's been caused to the community is not measured or part of the case."

Action Fraud states on its website that Ponzi schemes are "get rich quick investment scams," and that there is no actual investment as "the fraudsters siphon off the money for themselves".

In an intelligence-led investigation, detectives swooped on the alleged scam before the cash ran out, but Mr Manley said payments to investors would have dried up that month.

Gary Ghale from the Gurkha Welfare Trust said it is the first time he has heard of this type of scheme involving so many people from the Gurkha and Nepalese communities, and that he can think of three reasons potential victims may be reluctant to come forward.

"Firstly, they might not have heard of the investigation," he said. "Secondly, it is because they are worried they might be implicated in this investigation.

"And thirdly because of the embarrassing situation they are in."

He added: "We would recommend those who believe they have fallen victim to contact the police. Their case will be treated with care and absolute confidence and they will be treated as victims and not as suspects.

"We believe it is in people's best interest to come forward."

Mr Manley said those that invested may have encouraged friends and family to do the same, believing they were simply introducing them to a good deal and opportunity.

He said of the £50 million invested only £1 million of that has been recovered - equating to 2p in every pound for the wider pool of between 600-800 victims.

"There is still money missing, but I have some doubts as to whether any more will be found. The only justice people are going to get is if their story is told," he added.

The appeal comes nine months after the City of London Police arrested 10 men and three women, all of whom work at the City-based foreign exchange trading company, on suspicion of fraud by false representation and money laundering.

Detectives, supported by the Financial Conduct Authority, also seized a host of computers and documentary evidence. The 13 suspects were questioned and released on bail until March. Another man has since been arrested and is also on bail.

Those who think they may have fallen prey to the scheme should contact the City of London Police on 020 7601 6830 or email opvanburgh@cityoflondon.pnn.police.uk