The AFM Department for Kostanay Region is conducting a pre-trial investigation into illegal microfinance activities.
According to the department's press service, the suspect, without holding the relevant licence, provided loans with interest via the OLX and Instagram mobile applications over six years.
"The illegal actions were disguised as legitimate loan agreements, which stated sums significantly exceeding the actual amounts, as they included pre-accrued rewards of up to 100% per annum. The collateral property of the borrowers served as security for the repayment of funds," the statement says.
Under this scheme, the suspect arranged 72 transactions totalling over 556 million tenge.
One such transaction was concluded with a pensioner from Rudny, who supposedly received a loan of 13.2 million tenge from the suspect to pay for medical treatment. Under the terms of the deal, the victim was to pay 600,000 tenge monthly for two years.
However, in fact, she received only 6 million tenge in hand. The remaining 7.2 million tenge represented pre-accrued interest. To repay the loan, the pensioner had to mortgage her only flat.
By court order, the suspect's property worth 154 million tenge (6 private houses and 3 cars) has been seized. The investigation is ongoing.