Cashbery recognized as financial pyramid by Central Bank gets advertised on Moscow Central Circle
The Central Bank estimated the potential loss of Cashbery customers at 1 billion rubles ($15 mln). The materials on Cashbery are handed over to the police and the supervisory authority, but the advertisement of the platform for mutual lending continues legally.
The so-called investment platform Cashbery, the materials on which the Central Bank has sent to the Prosecutor General’s Office and the Ministry of Internal Affairs, recognizing it as the financial pyramid, continues to conduct active promotional activities.
According to RBC, the advertisement of the service still hangs in crowded places, including the stations of the Moscow Central Circle (MCC), the number of passengers of which has exceeded 92 million people since the beginning of the year.
The entire railway infrastructure of the MCC is owned by Russian Railways, in which the questions of RBC were forwarded to the Laysa agency that placed the advertisement. The agency said to the newspaper that the content of promotional materials of Cashbery does not go beyond the current legislation.
Federal Antimonopoly Service (FAS) is in charge of questions on advertising financial services. The Central Bank, in turn, sends to the FAS information related to the advertising activities of illegal financial organizations. The Federal Antimonopoly Service noted that "if it is established that this is a prohibited activity, then advertising of such activity will be prohibited."
Experts polled by RBC believe that advertising agencies are not obliged to remove the Cashbery advertisement; the case against the company has not been initiated and the Central Bank’s suspicions have no legal force, therefore the advertisement of the service formally meets the requirements of the law.
The Cashbery financial service, which previously led an aggressive advertising campaign in the media and the Internet, has positioned itself as a “mutual lending platform that helps investors and borrowers to interact.”
On its official website Сashbery.com, the service claims that it is possible to “invest” funds from at least 1,000 rubles ($15). According to assurances of the Cashbery, almost everything is possible; you can lend to individuals, small and medium businesses, provide financing secured by the movable and immovable property, and also make investments in cryptocurrency.
The company's proposed yield reaches 600% per annum for loans to individuals, up to 228.5% per annum – for loans to enterprises. In addition, Cashbery offers to take money at 1.2 - 2.2% per day. At the same time, in describing its legal model, the service emphasizes that each investor and borrower "acts at its own discretion."
According to the official website of the service, from 2016, Cashbery is a group of companies, which includes microcredit organization Warsaw, OOO Cashbery (registered in Rostov-on-Don with the actual address in Dubai) and registered in London Cashbery International Limited, which "coordinates the work of the platform for investors."
However, on September 26, 2018, the Bank of Russia announced that it had discovered signs of the classic financial pyramid in the operations of companies operating under the Cashbery brand.
Valery Lyakh, director of the department for countering unfair practices of the Central Bank, called the company “one of the largest financial pyramids in recent years,” noting that the total losses of Cashbery customers could exceed 1 billion rubles ($15 mln).
It was noted that Cashbery builds its activities on the principles of multilevel marketing, promising inflated revenues and conducts aggressive advertising in the media and social networks – singers Nikolay Baskov, who sang the Cashbery anthem, and Valery Meladze perform at the company's events, popular video bloggers advertise it. At the same time, there are no signs of a real economic activity of the company, whose number of clients is tens of thousands of people. In this regard, the regulator handed over materials on the service to the Prosecutor General’s Office and the Ministry of Internal Affairs, after which the supervisory authority sent a lawsuit to the court to block cashbery.com and кешбери.рф.
Video: Nikolay Baskov singing Cashbery anthem
Presumably, it concerns the US response to Ukraine’s help in the investigation against Joseph Biden, Trump’s main rival in the 2020 presidential election, who allegedly was in collusion with Kiev during the previous campaign.