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RCMP issue warning about pyramid scheme

The Prince George RCMP is urging the public to be wary of a pyramid scheme posing as a “gifting circle.” It targets groups of law-abiding citizens who are convinced to recruit friends and acquaintances.
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The Prince George RCMP is urging the public to be wary of a pyramid scheme posing as a “gifting circle.”
It targets groups of law-abiding citizens who are convinced to recruit friends and acquaintances.
New members must pay their recruiter a $5,000 “gift” to join and each member is then expected to recruit eight new people, so everyone would eventually end up with $40,000.
Recruiters attempt to legitimize the buy-in payment by insisting that it is not taxable or illegal because it is only a gift and often the victims do not realize that they are doing anything illegal.
The scheme, also known as a “birthday gift,” a “cloud,” “people helping people” and “New Boss Life,” has been reported in a number of Western Canadian cities.
In July,  two Maple Ridge women were formally charged under the Criminal Code for allegedly running the scam.
RCMP said Chrystal Lee Lyons, 44, and Esther Ayshia Vandenbrink, 56, were repeatedly warned for a year that the scheme is illegal before they were charged. Lyons faces four counts of conducting or managing a lottery or game of chance and Vandenbrink faces one count.
Information on common frauds can be found online at the Canadian Anti-Fraud Centre website