Reminder: A gift is only a gift when there is no expectation of any return.

North Vancouver

2018-05-15 09:48 PDT

File # 2017-9820

View Farsi version.

pyramid scheme

North Vancouver RCMP continues to receive reports of ‘gifting clouds’ operating in North Vancouver. A gifting cloud or gifting circle is a pyramid scheme. It is a fraud, it is illegal, and it is a criminal offence to even participate in one.

Participants are deceived into thinking that their investment is helping raise charity funds in their community. They are promised that their $5000 investment will make extra money for themselves. They are also instructed to recruit two more people to do the same – which is illegal.

Despite what is told at recruitment meetings, it is illegal to promote and participate at any level of a ‘gifting cloud’, said Cpl. Richard De Jong of the North Vancouver RCMP. The Canadian Anti-Fraud Centre defines pyramid schemes as ‘frauds that are based on recruiting an ever-increasing number of investors'.

‘Gifting clouds’ promise that you will receive a sum of money larger than your initial investment. The person at the top of the receiving level is promised to receive $40,000. The pyramid then splits into two parts and the remaining members move up a level.

Why you should not participate:

What you can do to help:

These scams are reported to be in operation throughout western Canada. If you are invited to participate in a ‘gifting cloud’, do not participate in any way but instead obtain specific details and notify your local police. Residents of North Vancouver can contact the North Vancouver RCMP at 604-985-1311.

To learn more about Pyramid Schemes, visit the BC.RCMP, Canadian Anti-Fraud Centre or Competition Bureau websites.
 

Released by

Cpl. Richard De Jong

Media Relations
North Vancouver RCMP
nvan.bc.rcmp.ca
147 East 14 St, North Vancouver, BC, V7L-2N4
Office: 604-969-7561
Cell: 604-363-5584
Fax: 604-990-7450

Email: richard.dejong@rcmp-grc.gc.ca

Follow Us:

Date modified: