News, June 2006

Thousands likely to lose all as stamp firms investigated for fraud

12th May and following. Forum Filatelico and Afinsa, two firms engaged in encouraging saving through purchases of stamps are being investigated for a pyramid fraud. Many thousands, particularly evindent in country areas where up to half the population of some villages are affected, may have lost their life savings.

It seems incredible, but true. Afinsa and Forum Filatelico have grown to the size of small banks, with branches in country villages... and just through selling stamp-related savings schemes. Fraud inspectors had begun to get concerend that it looked too good to be true and after initial investigations stepped in on 11th May, arresting the directors of both firms. The directors are detained for fear that they may destroy evidence.

Hundreds of employees and thousands of investors and small savers are affected. The firms were involved in a business not covered by the usual bank crash guarantee schemes, so the potential failure may leave them without a cent.

In this kind of pyramid scheme, new takings are used to pay the 'interest' on previous investments, while the stamps were 'sold' at prices well above market level. Ten million euros in cash were found at the luxury home of one director.

23rd June Update: the directors were released once initial investigations were concluded and funds secured; the initial conclusion of investigators is that the firm Forum has only 800 million in hand and commitments to buy back up tp five times that amount.