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Double Shah’s Scam

In 2005, syed sibtul hassan shah, an ordinary teacher from Pakistan, returned from Dubai to Wazirabad (Punjab) and made his neighbors a bargain. Having convinced everyone that he had learned the latest stock program on the trip, he offered everyone to double their money in just 15 days.
the-greatest-scams - Double Shah’s Scam

In 2005, syed sibtul hassan shah, an ordinary teacher from Pakistan, returned from Dubai to Wazirabad (Punjab) and made his neighbors a bargain. Having convinced everyone that he had learned the latest stock program on the trip, he offered everyone to double their money in just 15 days.

That is why the scheme was named “Double Shah». And it took only one person, his old friend, to start, and a small amount to get started. When that was doubled, word spread, soon 1 became 10 (his old work colleagues), 10 became 100…

And soon people are lined up outside his home DEMANDING that he take their money for doubling. Soon the dates start to slip. 15 days became 30 days, 30 days became 60 days, and then 70 days.

For eighteen months the pyramid had grown throughout the country, more than three thousand depositors gave him the savings worth more than $ 880 million at the exchange rate of that year. Syed Shah was even going to become a political leader in the region, when the police arrested him.

It is estimated that he had gathered TENS OF BILLIONS of Rupiahs (up to 1 billion US dollars) by some estimates. Some claimed that he had RETURNED 40 billion rupiahs to investors.

Thousands of people went to the streets to demand the set free their financial guru. He was sentenced to 14 years imprisonment. All of his moveable and immoveable assets were confiscated. He died in prison on November 2012 following his illness from diabetes, but the investigation is still ongoing.

Even today Double Shah is believed by some devout locals to actually have possessed the power to double money, and refused to believe Double Shah had been operating a Ponzi scheme.

Ponzi Scheme is an investment scheme that provides incomes of earlier investors on account of the funds received from later investors. At first, it may seem perfectly legitimate, but Ponzi scheme is usually destroyed as soon as the flow of funds from new investors is no longer sufficient to make payments to the old ones.The scheme is named after Charles Ponzi, who is notorious for using this affair in early 1920. Ponzi is not the author of the idea, but he was the first con artist in the United States who managed to get a huge amount of investment.

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