The "F" Division Commercial Crime Section is currently investigating the activities of an alleged illegal pyramid scheme currently circulating throughout Saskatchewan and across Canada.
Information received on the scheme shows that it is in contravention of Section 206(1)(e) of the Criminal Code. As this is an ongoing criminal investigation further details cannot be released at this time. This information is being released, at this time, in order to increase public awareness about Pyramid Schemes.
A Pyramid Scheme is a venture whereby a person, on payment of any sum of money, becomes entitled to receive a larger sum of money than they paid in, because other people pay to join the scheme.
A business may be illegal even though there is a valuable product and legitimate sales component.
Pyramid schemes require an ever-increasing number of people to participate so all the participants can make the amount of money the operators claim can be made. These schemes eventually collapse because of the number of people required to participate. Those who start the scheme will receive funds but the ones that join later will not. Participants in a Pyramid Scheme are breaking the law and could be subject to a criminal investigation and charges under Section 206(1)(e) of the Criminal Code which carries a maximum penalty of two years in prison.
Information on Pyramid Selling can be found at www.competitionbureau.gc.ca.
