Suspected Green Investment Fraud Under Investigation – Malmö Company Identified by the Economic Crime Authority

Investors were enticed with promises of high returns from environmental and energy projects in South Africa. However, according to the Economic Crime Authority (EBM), there is no support for the information presented, and the activity is instead suspected to bear the clear hallmarks of a classic Ponzi scheme. Malmö-based Filantropens Finanshus is now identified as the actor behind the investment offers.

For several years, savers have been offered opportunities to invest in various green energy projects in South Africa with a promised annual return of up to ten percent. According to the Economic Crime Authority (EBM), the scheme ran from 2019 to the present day.

The authority states that a large number of people have invested in bonds linked to alleged investments in, among other things, green electricity, solar energy, and water supply in South Africa.

According to information published by Småspararguiden, it is Malmö-based Filantropens Finanshus that has been behind the offers. The investments have been made through bonds issued by smaller private limited companies.

Solanti AB linked to the scheme

One of the companies used to issue the bonds is Solanti AB. According to reports, the company has the same board as Filantropens Finanshus.

In bond terms reviewed by Småspararguiden, investors were promised an annual interest rate of between seven and ten percent. Previously published information online included the following, among other things.

“The bond is 5-year with an annual interest rate for the holder of 10%. The project is financed with annual loans of EUR 2.4 million and is repaid over a 60-month period including interest.” The page has since been removed but is archived HERE.

At the same time, Solanti has profiled itself as a company with a strong environmental focus and has stated that operations have been conducted in collaboration with local suppliers, authorities, and associations in South Africa. The investments were described as not only profitable but also said to “contribute to increased well-being in the Western Cape province.”

Large gaps between promised and identified amounts

According to the Economic Crime Authority, investors have been informed about four different projects within green electricity, clean water, and solar energy. However, the authority questions the figures that have been presented.

“According to the information, approximately SEK 440 million was said to have been invested in the projects. The investigation shows that this is incorrect. The actual amount that could be identified amounts to about SEK 120 million,” the authority writes.

At the same time, the investigation shows that around SEK 19 million has been paid out to investors as returns.

What is a Ponzi Scheme?

A Ponzi scheme is a form of investment fraud in which returns to earlier investors are not generated by genuine profit or legitimate business activity. Instead, funds from new investors are used to pay out interest or returns to those who invested earlier.

As long as new money continues to flow in, the scheme can appear to be successful. When the influx of new investors slows or ceases, the system collapses as it lacks sufficient income to meet its obligations. This is also the suspicion now under investigation by the Economic Crime Authority (EBM).

“The procedure is typical of a so-called Ponzi scheme, that is, an investment fraud where earlier investors are paid with money from new investors. The scam lacks real business activity and only works as long as new participants are lured in,” says Fredrik Petersson, senior prosecutor at EBM and the lead investigator, in a comment.

The investigation continues

The Economic Crime Authority is now working to map both the flow of funds and the number of people who may have been affected. According to Fredrik Petersson, interviews with the suspects and a review of seized materials remain to be completed.

“The investigation now continues with interviews of the suspects and a review of the seized technical materials. We also want to take the opportunity to encourage anyone who recognizes the scheme and suspects they have been affected to contact us,” continues Fredrik Petersson.

Two people suspected of crimes

Småspararguiden reports that they have been in contact with Filantropens Finanshus. According to the company, two individuals have been notified of suspicion of crime.

No further details about the suspicions or the roles of the suspected individuals in the operation have yet been made public.