Banking sources say about 113 million rupees have officially passed through bank accounts discovered so far, but victims believe a much larger amount was scammed.
Officials also suspect that cash may have been hand-carried through the airport as Sri Lankan rupees, because Sri Lanka currency has a demand in South India.
Nations Trust Bank (NTB), where Seagull members were asked to open accounts had first alerted authorities after the activities of the firm intensified to unusual proportions.
Investigators also learnt that the two scam operators, who came from India, had first remitted money to the local branch of ICICI Bank to open an account.
Regulators usually advise banks to follow the 'know your customer' principle in order to keep criminal activities out of the banking system, but critics say Sri Lanka seems now to have become a hot destination for firms engaging in international rackets, such as pyramid scams.
They say Sri Lanka's stock market in particular seems to have become a money laundering destination for firms that are engaging in international and local financial frauds, including pyramid scams and the country's banking system is now being targeted by these entities.
Meanwhile, members of Seagullsoftware say cheques were being cleared as late as October 19, almost a week after the account at NTB was closed, indicating that another bank may also have been used by the scam artists.
About 14,000 persons had paid money to the Mt. Lavinia main office, and about 4,000 are believed to have paid money to the agency at Slave Island while around 2,000 may have joined the agency at Maya Avenue.
Victims of Seagullsoftware who have banded together as an association are seeking justice.
"We are sending an open letter to the President, Leader of the Opposition, the Police and other concerned authorities asking for urgent actions to apprehend the two Indian nationals," Secretary of the victims association Aruna Abeyratne said.
There are many people who play on the gullibilty of others. Your best protection is to be wary. There are many other scams and potentially high risk "investments" around, just make sure you don't get caught again.
A very useful website that highlights the various kinds of financial scams prevalent is
http://www.quatloos.com/
There are many otehr useful websites as well. Always do a thorough investigation of the business and verify the claims made before putting in any money. Anything that sounds too good to be true is probably a scam.
Amongst the other scams that are currently operating in Sri Lanka are:
1. The various forestry (timber, teak, vanilla, rambutan & whatnot) schemes. They offer suspiciously high returns and are most likely to be scams.
2. The so-called finance companies that offer spectacular rates of return - 24%, 20% etc when banks pay only 10-12% How can these places possibly make money by borrowing at such high interest rates? This happened in the 1980's when Mercantile Credit, Union Trust and a whole heap of others collapsed. Stick to licensed banks.
3. The so called multi-level marketing schemes that are being touted as work-from home businesses, self employment schemes etc. These are invariably pyramid schemes.
There are a few basic things to understand:about investment
1. If it sounds too good to be true it probably is.
2. It is better to be safe than sorry
3. Before putting money into any scheme get advice from a numberof people including banks, accountants etc (this is not foolproof becuase some of these people cannot see through scams but at least make the attempt.
Dollar is @ Rs 107.7
GDP soon to be Negative
GMTs sector will be soon to be destroyed. Well done Madinda Chintana
I cen remember few days after the election there was a news item on the TV that politician has initiatted cleaning a dirty canal. They said it was cleaned under the "mahinda chinthana" .............. yes.
there are good things the govt do. But they become such a joke in the eyes of people if they keep on saying that even cleaning roadways are done under "mahinda chinthana".
For the Ponzi Scan, i think it is unfair to blame the govt. It is the foolishness of the people. They should have checked what they are putting money on. Anyway good lessons!
I also think the banks shold have been more careful and do background checks of people before they accet business accounts. For example if they did background checks on these people they could have found out about such scams in the past ...............
Don't blame Central Bank. They have done a lot to educate people on such scams!!!!
That is why they have advertise on Nov 3rd Daily News saying be careful of such scams.
Great Timing Central Bank !! Good that you waited until 1000's of people lose millions of money. Until people like you in CB, I am sure that GDP of SL will not be 8% it will be 80% !!!!!
Also, don't blame the poor fellow MR. How the hell will the president who doesn't know that Narahenpita blood transfusion centre project was initiated long before he is being elected will know about such a scam. ( For your information: Daily News on Nov 2nd had a 1 page ad saying that Blood Transfusion Centre is initiated under Mahinda Chintana!!, The construction was started long before he got elected.)
So, I wonder how many more things on this buggers head. He has to come up with lot of chinthanaya's no time to look in to Seagull Scam.
After all those people who put money into this must be blamed most. We have experience on Gold Quest and to go behind these things is really idiotic!
My question is what was the Central Bank doing? What was the police doing? What was the government doing? This scam was also in operation in the Hambantota area. Surely our president may have been aware of this scam.
I think the President, The Governor of the Central Bank, the Indian High Commissioner should get activated and do something to catch the culprit.
Seagullsoftwares was in operation from January 2006. Where was the Income Dept.
None of the important departments were concerned cos they were being paid.
Please don’t think it is the individual's money. The country is also affected cos half the economy is gone.
So stop calling the investors stupid, they were only trying to make some money.
cos with the cost Of living skyrocketing, when they found this as an opportunity they took the chance.
The people who keep calling the investors idiots and stupid are the people who did not have the money to invest, if they too had the money I am sure they too would have wanted to make a quick buck.
If action is not taken to bring the culprit to books this country will be the breeding place for these types of scams.
Finally I would like to mention that the Mt Lavinia police station is a hell hole, from the OIC downwards.
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