Victims of Tradex Scheme Reveal Cash Payments Before Downfall

In a recent court hearing, victims of the Tradex case disclosed that they had received cash payments prior to the scheme’s dramatic collapse. This revelation has shed light on the operations of the alleged pyramid scheme and the experiences of those who invested their hard-earned money.

Insights from Affected Investors

During the proceedings at the Provincial Court of Santa Cruz de Tenerife, a group of 120 individuals, all victims of the Tradex scheme, shared their harrowing experiences. The scheme has reportedly amassed debts nearing three million euros, leaving many investors in dire financial straits. Several victims took the stand to recount their stories, highlighting the initial allure of the scheme, which promised significant returns on investments.

One investor detailed a staggering loss of 52,000 euros after participating in multiple transactions. Initially, he was enticed by a 10% return on his investment, which seemed promising. However, as he continued to invest, the returns dwindled, yielding only between 500 and 1,000 euros on subsequent contributions. Another victim, who invested 10,000 euros—partly sourced from his ill mother’s savings—expressed deep frustration, stating that he has yet to recover any of that amount, leaving him in a precarious financial position.

Cash Transactions and Deceptive Practices

The victims collectively noted that their initial investments appeared to generate profits, all of which were disbursed in cash at the offices operated by Mukesh Daswani, the primary accused in the case. The offices were initially located in Parque Bulevar before relocating to Calle del Castillo. This physical presence gave many investors a false sense of security, reinforcing their belief in the legitimacy of the operation.

In addition to cash payments, victims reported receiving misleading screenshots via WhatsApp that purported to demonstrate the growth of their investments. One witness recounted how the company offered stock market courses and even encouraged him to become a sales agent, further entrenching him in the scheme. Another client expressed that the expansion of the offices contributed to a perception of stability and prosperity, leading many to invest more than they could afford to lose.

Ongoing Legal Proceedings and Potential Consequences

The legal proceedings against Mukesh Daswani are intensifying, with the prosecution pursuing a substantial 12-year prison sentence for him. This sentence includes eight years for aggravated fraud and an additional four years for failure to execute. The second accused in the case faces a sentence of nine and a half years. In addition to prison time, the prosecution is also seeking restitution of the defrauded amounts along with accrued interest, aiming to provide some measure of justice for the victims.

Furthermore, the prosecution has demanded that a third defendant return over 300,000 euros that she allegedly received from the scheme. According to the Public Prosecutor’s Office, the accused took steps to conceal their assets and funds in anticipation of the scheme’s inevitable collapse. They reportedly opened accounts in various countries, including the United Arab Emirates, Lithuania, and the United Kingdom, and even converted funds into cryptocurrencies through a platform based in the Seychelles. These actions indicate a calculated effort to evade accountability and protect their ill-gotten gains.

Key points

• Victims of the Tradex case reported receiving cash payments before the scheme collapsed.
• The alleged pyramid scheme has resulted in debts of approximately three million euros.
• Investors reported significant financial losses, with one individual losing 52,000 euros.
• Initial profits were paid in cash at the offices of Mukesh Daswani.
• The prosecution is seeking a 12-year prison sentence for Daswani.
• Attempts were made by the accused to conceal assets in various countries.