After the deputy director of the Securities and Exchange Commission, Paul Ababio spoke with Joy News’ Israel Laryea on News Night yesterday, 25th September 2018, Menzgold followed a few hours later with a press release clarifying their position on the statements made by Paul Ababio.
According to Menzgold, SEC’s position that Menzgold should carry on with operations and pay existing customers but should not take in new contracts will not be possible for Menzgold to do.
The press statement signed by management explained that SEC does not understand the operation of the gold vault product service and that is why they are making that suggestion because, without new investments, they won’t be able to meet their responsibilities of paying old customers.
With the understanding of how Ponzi scheme works as explained by Ghpage.com in details a few days back, a Ponzi scheme thrives on robbing Peter to pay Paul system.
So if Menzgold is saying they can’t pay old customers because they have been stopped from taking in new customers, is Menzgold admitting to Ponzi Scheme?
READ THE FULL STATEMENT BELOW
Speaking Israel Laryear on Joy News on News Night, September 25th, 2018, the deputy director of SEC, Paul Ababio revealed that Menzgold is yet to submit the documents the SEC requested from the company despite the fact that the letter to Menzgold was delivered on the 7th September 2018.
The Deputy Director of SEC also revealed that contrary to the belief in the public domain that Menzgoldhas been ordered to hold on all operations, SEC has not stop Menzgold from paying its old customers per the contract signed between Menzgold and the depositors.
Paul Ababio explained that the order of closure was that Menzgold should cease taking in new deposits. Nowhere did SEC authorized Menzgold not to give existing customers their money or returns.