North Vancouver RCMP sending a warning to the public after receiving reports of ‘gifting clouds’ (pyramid schemes) operating in the city.
Gifting clouds promise participants that they will receive a sum of money larger than their initial investment. The person at the top level is promised to receive $40,000. The pyramid splits into two parts and the remaining members move up one level.
Police say that participants are deceived into thinking that their investment is helping raise funds in their community. They are also promised that their $5000 investment will make extra money for themselves. They are instructed to recruit two or more people to do the same.
“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, in a release. “The Canadian Anti-Fraud Centre defines pyramid schemes as ‘frauds that are based on recruiting an ever-increasing number of investors.'”
North Vancouver RCMP is reminding the public that participation in these schemes is illegal. Participants will lose their money and they could be arrested and charged for their involvement. Recruiting friends and family could also cause them to lose money and be criminally charged.
“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 if they or anyone they know is asked to participate in a Gifting Cloud.