Last updated: February 16. 2013 8:22PM - 85 Views

A closed outlet of the financial institute Amber Gold in Warsaw, Poland, Monday, Aug. 27, 2012, after the organization was liquidated and has emerged as an unsustainable pyramid scheme. Amber Gold promised guaranteed returns of between 10 to 14 percent annually for what it claimed were investments in gold and for many of its clients who grew up under communism the prospects of high returns on investments was too much to resist.  Now officials say it operated like a pyramid scheme, and thousands of its clients are facing the prospect of never seeing their money again.(AP Photo/Czarek Sokolowski)
A closed outlet of the financial institute Amber Gold in Warsaw, Poland, Monday, Aug. 27, 2012, after the organization was liquidated and has emerged as an unsustainable pyramid scheme. Amber Gold promised guaranteed returns of between 10 to 14 percent annually for what it claimed were investments in gold and for many of its clients who grew up under communism the prospects of high returns on investments was too much to resist. Now officials say it operated like a pyramid scheme, and thousands of its clients are facing the prospect of never seeing their money again.(AP Photo/Czarek Sokolowski)
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(AP) Polish prosecutors have filed a new charge of fraud against a man who ran a nationwide financial scheme.


Marcin Plichta, the head of Amber Gold, a financial institution that has operated across Poland since 2009, was charged with six counts of financial wrongdoing earlier this month.


A spokesman for prosecutors, Wojciech Szelagowski, said the charge of defrauding investors of large sums of money was added Wednesday after investigators looked closely at the company's books.


If found guilty, Plichta could face up to 15 years in prison.


Amber Gold offered returns of over 10 percent on what it claimed were investments in gold. Instead of investing the money, it used funds from new clients to pay off older clients. It collapsed this month, unable to repay 180 million zlotys (55 million).


Associated Press
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