Effect of Ponzi schemes on a country: the case of Ghana
ISSN: 1359-0790
Article publication date: 15 July 2021
Issue publication date: 5 August 2021
Abstract
Purpose
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.
Design/methodology/approach
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.
Findings
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.
Originality/value
This is the first paper that explores the major Ponzi schemes in Ghana.
Keywords
Citation
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. https://doi.org/10.1108/JFC-09-2020-0177
Publisher
:Emerald Publishing Limited
Copyright © 2021, Emerald Publishing Limited