Ponzi Schemes to Result in 1m RUR Fines
24 February 2016 (09:30)
UrBC, Moscow, February 24, 2016. Russia’s State Duma adopted a bill on Friday that makes creation of pyramid schemes illegal, with up to 1m RUR in fines (5,000 to 50,000 RUR for private individuals, 20,000 RUR to 100,000 RUR for public individuals, and 500,000 RUR to 1m RUR for legal entities), Finmarket reports.
The same fines will be imposed on those advertising and promoting pyramid schemes.
The amendments to this effect will be made to the Administrative Offense Code.
The Duma also adopted amendments to the Criminal Code, making organization of financial pyramids a crime.
Under this new document, attracting over 1.5m RUR worth of private and business investors’ money through Ponzi schemes will result in a 1m RUR fine, or confiscation of the culprit’s two-year income, or community service, or up to four years in prison. Attracting over 6m RUR worth of investors’ money will result in 1.5m RUR fine, or confiscation of the culprit’s three-year income, or community service, or up to five years in prison.
The same fines will be imposed on those advertising and promoting pyramid schemes.
The amendments to this effect will be made to the Administrative Offense Code.
The Duma also adopted amendments to the Criminal Code, making organization of financial pyramids a crime.
Under this new document, attracting over 1.5m RUR worth of private and business investors’ money through Ponzi schemes will result in a 1m RUR fine, or confiscation of the culprit’s two-year income, or community service, or up to four years in prison. Attracting over 6m RUR worth of investors’ money will result in 1.5m RUR fine, or confiscation of the culprit’s three-year income, or community service, or up to five years in prison.
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