RCMP warn against Pyramid Schemes
Aug 31, 2011 at 9:12 am in News by TheNewsGirl
The Wood Buffalo RCMP are warning residents and site workers to think twice before paying large sums of money for the promise of an easy and large return on their investment. Pyramid Schemes are still around and they continue to rope in people of all types.
The Pyramid Scheme that is going around the Fort McMurray is recruiting people to pay $5,000.00 and once they recruit others to do the same they will be paid out $40,000.00. It is likely that once your money is gone you will not be paid a dime. The RCMP would like to remind residents and those working in our area to get the facts, speak with friends and/or investment brokers, and remember the old adage “If it is sounds to good to be true, it probably is.”
The RCMP is concerned that law abiding citizens are being misled to believe this is not a pyramid scheme because fraudsters organizing the scheme claim that the “networking” or “advertising” structure makes the scheme legal. Regardless of any networking or advertising promotion, if the primary return to participants is due to money paid by recruitment of others it is still a pyramid scheme.
Participants are also being misled by claims of legal opinions allegedly received from lawyers, Canadian Revenue Agency employees and police officers. These officials are always referred to in a third person capacity, and appear to provide ample validation of the scheme to new participants. If you are advised of legal opinions, request the name of the lawyer or police officer who has allegedly validated the scheme. Chances are that no such individual will be truthfully identified.
Section 206(1)(e) of the Criminal Code lays out the elements of a pyramid scheme offence and how one may be prosecuted criminally simply by virtue of participating in the scheme.
The Wood Buffalo RCMP is asking anyone who may have information regarding this or any incident to contact the Wood Buffalo RCMP at (780) 788-4000 or Crime Stoppers at 1-800-222-8477 (TIPS), www.crimestoppers.ab.ca