Criminal law analysis regarding liability for establishing and managing financial Ponzi schemes in certain countries

Abstract

Relevance. Crimes related to investment (financial) pyramids pose a threat to state stability and the economic security of both the country and the individual citizens. The research relevance is predetermined by the need to ensure effective counteraction to the phenomenon in the current environment. Purpose. The research aims to analyse the criminal legislation of the United States of America, Germany, China and Russia concerning combating pyramid schemes to develop proposals for further improvement of the legislation of the Republic of Kazakhstan on this issue. Methodology. The analytical, comparative, statistical, legal, and dogmatic methods were used. Results. The authors conducted a comparative analysis of the criminal law provisions in Kazakhstan and other jurisdictions, examining the various ways in which liability for establishing and operating pyramid schemes is codified, including the different forms, approaches, and techniques employed in the legislative framework. The authors identified common and distinctive trends and developed recommendations for improving the legislative framework in this area. The authors provides a forensic characterisation of the crime of creating and organising pyramid schemes. The statistical data of the Republic of Kazakhstan on this type of crime are studied. In addition, the authors identifies the criteria by which preliminary investigation of this category of crimes should be carried out, which will contribute to a more effective investigation and prosecution of perpetrators. Conclusions. This study contributes to deepening the scientific understanding of the topic and improving legislation. The results of the study can be used by law enforcement agencies, legislative bodies, and the scientific community to develop and improve legal norms and procedures related to combating pyramid schemes. Keywords: investment manipulation; historical development; comparative characteristics; economic offences; pre-trial investigation