If I understand this correctly…
The guy starts a business selling vitamins and nutrition bars.
Then he starts a charity to collect donations. He uses those donations to buy products from his business and distribute them. So basically, he doesn't actually need customers. He's using a charity to fund his business.
Then, to get more money into the charity, he sets up a tax scheme to bring in investors. He collects money from people to "secure loans" of much higher amounts, and gives them tax receipts for the higher amounts. So they claim the higher amount, and get back more in a tax refund than they actually donated in the first place. He tells them this is all legal so of course they line up in droves to give him money. I would too if I thought I could legally donate $2500 and then get $4000 back in taxes.
The "loans" come from a non-existant company that will obviously never ask for them to be repaid. Instead, he simply uses the donations to fund his original company, putting the money ultimately back into his own pocket.
Of course, he also has the option of demanding that the investors pay off these loans once he squanders away the money.
That would imply, however, that the loans actually existed and someone wanted to be repaid. I rather doubt that's the case and demanding more money from the investors would be a sure way of imploding his scheme.
He's doing this so openly that the Star has detailed it in an article and yet he's still getting away with it.
How is this allowed to happen???