CAIRO: The chairman of Stars brokerage firm Ibrahim Salah Eddin fled the country with his clients money.
According to Al-Masry Al-Youm reports, the company was posing as a brokerage firm but was actually involved in pyramid scheme activities, or a business model based on a fraudulent business plan and it is illegal in many countries.
The Egyptian Money Market General Authority, the official authority in charge of stock market-related inspections, told Daily News Egypt that investigations are currently underway and that the authority is not allowed to release information to the press until Sunday.
If found guilty, Salah Eddin will be charged with heading a firm involved in pyramid scheme activities, which is prohibited by law following related financial scandals that involved similar companies in the 1980s.
One of the most notorious of these cases was that of Ahmed Al-Rayyan, who extorted hundreds of thousands of pounds from his clients while promising high returns on their investments.
