The Ethiopian Federal Police announced that Tians Ethiopia Business Share Company and its top executives have been convicted of operating an illegal pyramid sales scheme for years and engaging in money laundering, resulting in heavy prison sentences and financial penalties.
According to the prosecutors, the company used its legal license to import nutritional supplements as a front while running a deceptive recruitment-based business between 2004 and 2008 E.C.
Authorities found that more than 40 million birr was unlawfully collected and diverted for personal gain, in violation of consumer protection laws.
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The scheme lured participants under the guise of “commission sales agents,” promising lucrative rewards including cars, international travel, and substantial cash bonuses.
Victims were encouraged to recruit others into the system, a structure the court determined to be an illegal pyramid scheme banned under Ethiopia’s Trade and Consumer Protection Laws and Criminal Code.
In addition to fraud, the court found the company guilty of money laundering proceeds obtained through the scheme, disguising illicit earnings as legitimate business income.
The court sentenced company leaders Doyong Gang and Teodros Bekele to 17 years of rigorous imprisonment each, along with fines of 10 million birr per individual. The 1st defendant, the company itself was ordered to pay a 20 million birr fine, bringing the total penalty to 40 million birr.
