R.C.M.P. warn of Pyramid Scheme in Fort Mac

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R.C.M.P. warn of Pyramid Scheme in Fort Mac

Money cloud pyramid scheme in Fort McMurray
R.C.M.P.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), http://www.crimestoppers.ab.ca
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Re: R.C.M.P. warn of Pyramid Scheme in Fort Mac

Unread postby poopdogg » Thu Sep 01, 2011 8:38 am

Haha this is to funny. I know of tons of people involved in this. One got paid out but the rest are waiting. It's still really shady and I would never get involved.
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Re: R.C.M.P. warn of Pyramid Scheme in Fort Mac

Unread postby betsi » Thu Sep 01, 2011 10:44 am

You should tell your friends about a prince in Nigeria who desperately needs to get millions of dollars out to Canada, they could collect a hefty fee for their help :lol:
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Re: R.C.M.P. warn of Pyramid Scheme in Fort Mac

Unread postby Maggieb » Thu Sep 01, 2011 1:23 pm

Had a friend once that dished out 10,000 bucks on an investment. I could not believe she had fallen for it,, but lots of people in our small town had. Every six month or so I would ask if she had earned anything and she kept hoping saying that she had talked to people and things were looking good,, after a few years I stopped asking as I think she had finally figured out that they all had been scammed.
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Re: R.C.M.P. warn of Pyramid Scheme in Fort Mac

Unread postby poopdogg » Sat Sep 03, 2011 7:20 pm

One of my coworkers has been paid out the $40,000. Another one is "supposedly" getting paid out very soon here. In the end yes you might possibly get paid out or you might lose out on your $5000. In the end I would never be able to willingly try and convince someone to go into this, even if telling them it was a scheme and they understood. I've also heard a lot of realtors are/were involved in this "clouding" scheme and some were apparently mentioning it to prospective buyers and telling them this would be a way to aquire a down payment.
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Re: R.C.M.P. warn of Pyramid Scheme in Fort Mac

Unread postby MasterJedi » Mon Sep 05, 2011 6:54 am

There are people still out there convinced that this cloud scheme is legal...or they've been told it's gray. Come on! How can you possibly think that receiving $40 000 after giving someone $5000 at a secret "birthday" party is anything but illegal! You are told to keep the meetings secret, set up a fake hotmail account with a fake name to receive information and a be careful who you tell. This doesn't raise red flags for you? If it doesn't you are allowing your conscious be blind with greed.
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Re: R.C.M.P. warn of Pyramid Scheme in Fort Mac

Unread postby betsi » Wed Sep 07, 2011 7:04 pm

Dinner Clubs Pyramid Schemes

Dinner clubs use such euphemisms as "appetizer" and "entree" for levels of participation.

The pyramids which are misnamed as circles operate like this: The organizers portray the program as a progressive dinner party or birthday party. Eight people begin on the bottom rung as "appetizers" who contribute $5,000 each at a birthday party for the top person, or the dessert.

Between those levels are four soup-and-salad people and two entree people. Once the dessert person birthdays, or gets their $40,000, everyone moves up a notch: the entrees become desserts and split into two other tables, and eight more appetizers are needed for both tables.

Statistics show that only 10 percent of people who put up the money ever get a return. Once the pyramid reaches a certain stage, there are always too many people to be paid off, and the pyramid collapses. The key to the downfall of such schemes is that it eventually and inevitably requires about eight times more participants who put money in than actually receive it.

As if having a history provided respectability, they state that the plan originated 11 years ago in Toronto, Canada by a group of women to create money for charity. The concept was apparently so successful that the women realized they could use it to help each other. From Canada, the plan moved to Washington, then to Texas and beyond. It is now spreading across Great Britain faster than hoof in mouth disease.

Federal, state and local government officials say that not only are the various gifting circles illegal pyramid schemes, but as many as 90 percent of the overall members won't ever get "dessert", the top level in which participants can receive thousands of dollars beyond their initial investment.

Successful participants adamantly disagree.

Dismissing the possibility of personal gain on a large scale, participants insist that they give their $5,000 as gifts to offer psychological, spiritual and financial support and empowerment to other women. The schemes also purport to help charitable causes and women who are trying to escape an abusive husband or who have children with medical needs.

They say they have no expectation of one day being at the top, where they might be fortunate enough to have a "birthday" and receive their $40,000 dessert.

This is the reason the gifting circle is not a pyramid, they say. The group is about love and growth, the $40,000 payoff is incidental.

So whenever police issue an advisory stating the criminal aspect of the clubs and the potential of financial loss they are inundated with calls from residents insisting, often abusively, that they are participating in gifting clubs and not pyramid schemes, which are illegal.

"I believe in it and I am not going to stop doing it," one lady said. "So there, arrest me."

They're very convincing that this is just women helping women and it's nobody's business but theirs. They make it a very wholesome, good thing when in fact they're simply taking other people's money.
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