Nelson Police warn of a scheme that promises money based on a pyramid.
Being referred to as a Women’s Circle, the scheme requires women to provide $5000 to another woman already in the circle. She is then promised a gift much larger as she moves higher up the hierarchy.
“Although those behind the Women’s Circle claim it is not a hierarchy or pyramid, it is,” says Sgt. Paul Bayes in a release. “The only way for individuals to receive gifts greater than what they are contributing is through the loss of others in ‘Circle.’ There is no new money created in the Circle, it is simply a fraud that allows the original recruiters to take money from the new members.”
Eventually when no new recruits come into the Circle, the gifters will have lost their money, Bayes explains.
Pyramid schemes are illegal and income received from the scheme must be declared with Revenue Canada.
If anyone has been victim to this fraud, contact Nelson Police, the local RCMP or the Canadian Anti-Fraud Centre at 1-888-495-8501.