The Attorney General (AG) Godfred Yeboah Dame, has filed a petition at the Accra High Court seeking an order to dissolve a network marketing company QNET believed to be a Ponzi scheme.
In the petition filed at the Commercial Division of the court, the AG accused QNET of engaging in dishonest, illegal and fraudulent business activities.
QNET is said to mainly operate in the Ashanti, Western, Eastern and Ahafo Regions, engaging in various schemes such as inviting the public to buy products for outrageous and non-existent profits.
“Investigations by the National Security Council Secretariat disclosed that QNET operates in a manner akin to a Ponzi scheme by luring clients to make deposits and investments with them which they eventually lose.
“Petitioner (A-G Godfred Dame Yeboah) holds that to become a member of the false scheme put in place by the respondent (QNET), respondent requires prospective subscribers to purchase various online items for various sums ranging between GH¢5,000 and GH¢15,000,” the petition revealed.
Investigations further revealed that QNET also took money from people with false representation that it could help them find jobs.
“The respondent lures unsuspecting members of the public to pay the sum of about GHGH¢5,000 for the purpose of placing them in various jobs which turned out to be a hoax,” the petition added.
The Attorney General said after taking the money the company would then orchestrate the arrest of its victims who try to be to tell others about its fraudulent activities.
Alleged money laundering
Mr Dame further contends that the activities of QNET are mostly dominated by Nigerians, Burkinabes, Ivorians, Malians and Togolese, who launder the proceeds from their illegal activities.
“The petitioner says the widespread criminality and illegality for which the respondent is being operated has grossly undermined its existence in the Ghanaian community,” the petition added.
According to the AG, investigations revealed that QNET is part of Quest International also known as QI Group which is located in Hong Kong, a company operating in many countries.
However, the AG said owing to its “illegal activities”, the company has been banned in the USA, Canada, Australia, Rwanda, Iran, Sri Lanka, Syria, Afghanistan and La Cote d’Ivoire.
What AG is seeking
The petition was filed under the Corporate Insolvency and Restructuring Act, 2020 (Act 1015), Section 84 (1) of Act 1015.
The Act allows the AG, the Registrar-General, a creditor of a company or a member of the company to present a petition to the High Court for the official winding up (dissolution) of a company on grounds that”
- The business or objects of the company are unlawful
- The company is operated for an illegal purpose
- The business being carried out by the company is not authorised by the constitution of the company
Based on the above provision of Act 1015, the AG is seeking an order from the High Court for the official winding up of Quest Net Limited, and an order restraining the directors, members and officers of the company from exercising any powers that pertain to the running of the company.
Mr Dame also wants the court to appoint the Registrar of Companies, in her capacity as an Official Liquidator to exercise the powers of a liquidator including managing the assets of the respondent Quest Ney Limited pending the making of a winding order by this Honourable Court.