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Effect of Ponzi schemes on a country: the case of Ghana

Umar Mohammed (Department of Economics, Ankara Yildirim Beyazit University, Ankara, Turkey)

Journal of Financial Crime

ISSN: 1359-0790

Article publication date: 15 July 2021

Issue publication date: 5 August 2021




This paper aims to examine the nature and operations of the two main Ponzi schemes (DKM Diamond Micro Finance Company and Menzgold Company Limited). It explores how such dubious schemes were able to circumvent financial regulatory bodies and their impact on the social, political and economic spheres of Ghana.


The paper adopts both quantitative and qualitative research approaches and relies on secondary sources of data from the Bank of Ghana, World Bank and textbooks, etc.


It was found out that inadequate supervisory role by financial regulators was a factor that made these schemes thrive in Ghana which had dire consequences on the socio-economic of the country.


This is the first paper that explores the major Ponzi schemes in Ghana.



Mohammed, U. (2021), "Effect of Ponzi schemes on a country: the case of Ghana", Journal of Financial Crime, Vol. 28 No. 3, pp. 926-939.



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