Ponzi Schemes in Ghana: The Menzgold Saga

Abstract

Ponzi schemes have ravaged financial markets and have caused considerable financial loss to many individuals. The continuous emergence of Ponzi schemes is as a result of a lacuna in financial regulation. The collapse of Menzgold, a company in Ghana, is another episode in the ebb and flow of Ponzi schemes in Ghana. This article therefore exploits this recent development to explain the emergence of Ponzi schemes in Ghana and situates this trend in the context of the lapses in financial regulation. In doing this, both the doctrinal approach and the comparative approach are applied in this article to contribute to the little Ghanaian literature there is on Ponzi schemes and regulation in Ghana.