A sentence has been passed in Kokshetau in a case concerning the creation of a financial pyramid scheme that raised funds totalling more than 136.5 million tenge. The court also considered an episode involving the raising of funds through investment offers.
According to the Kokshetau City Court, the criminal case was heard against three individuals, who were charged with creating and managing a financial pyramid scheme as part of a group acting on prior agreement, involving the raising of funds on an especially large scale.
HOW THE SCHEME OPERATED
The court established that from February 2020, Zh., a participant in the financial pyramid scheme "S-Group", organised and headed its branch in Kokshetau.
In October 2020, Z., who had previously been involved in similar projects, was brought into the operation. According to case materials, they offered citizens the opportunity to invest money, promising a return.
In May 2021, A. joined the group, whose role was to find new investors through social networks.
The court established that the funds were distributed among the leaders and previously recruited participants. The total amount invested was 136.5 million tenge.
SEPARATE INVESTMENT EPISODE
The court also considered an episode related to the activities of the company "Equitix".
According to case materials, in June 2024, A. persuaded the victim Sh. to invest funds. To do so, he took out a bank loan for 30 million tenge and handed over the money.
Other details of the investment mechanism are not specified in the materials.
SENTENCE AND MEASURES OF RECOVERY
The case was heard under paragraph 2 of part 3 of Article 217 of the Criminal Code of the Republic of Kazakhstan ("Creation and management of a financial pyramid scheme involving the raising of funds on an especially large scale").
Episodes concerning A. were also considered under paragraph 1 of part 2 of Article 217-1 of the Criminal Code of the Republic of Kazakhstan ("Advertising a financial pyramid scheme using mass media and electronic resources") and paragraph 2 of part 4 of Article 190 of the Criminal Code of the Republic of Kazakhstan ("Fraud on an especially large scale").
The court's sentence was as follows:
- Zh. and Z. were each sentenced to 6 years in prison;
- the execution of Z.'s sentence was suspended for 1 year with monitoring of their behaviour;
- A. was sentenced to 6 years and 6 months in prison.
The court ordered the confiscation of the convicts' property — apartments, parking spaces, cars, a garage, a land plot and other property — to be transferred to the victims as compensation for damages.
A sum of 136.5 million tenge, deemed to have been obtained through criminal means, was confiscated to the state.
Additionally, funds were recovered from the convicts in favour of the victims under civil claims, including 1.6 million tenge in legal representation costs. Separately, 30 million tenge was recovered from A. in favour of the victim Sh.
The sentence had not come into legal force at the time of publication.