Emily Plihal
Smoky River Express
Residents of Smoky River Region be aware of illegal gifting schemes being conducted throughout the area.
That is the message McLennan RCMP are attempting to spread, to ensure residents of the region do not get caught up in the very illegal profit-promising schemes.
These particular types of schemes, also called pyramid scemes, are usually conducted by recruiting friends, family and other community members to buy into the process with a certain amount of money.
After buying into the scheme, the individual then has to find other people to recruit under them, forming a “pyramid”.
McLennan RCMP Sgt. Ged Dentinger says although the pyramid schemes are not running rampant in the region, there are still some cases of the money-grab being made within Smoky River Region.
He warns becoming involved with a pyramid scheme could result in jail time of up to two years.
“We don’t think its a big problem yet, but it has surfaced in the area,” says Dentinger. “Some people in the area have made contributions.”
“We think there could be a larger push in the region, with local individuals becoming trapped in a scheme.”
Once the bottom line of the pyramid reaches a delegated number of people (Dentinger explains this number is usually either eight or nine), the person at the top receives eight times the amount that was gifted to the company at the beginning of the scheming process.
“Giving money with expecations of getting a larger amount of money at a later date is illegal,” explains Dentinger. “If people are concerned they may have encountered a gifting scheme, they should contact their local RCMP detachment as soon as possible.”
According to the Criminal Code of Canada section 206(1)(e); “it is an indictable offence for anyone who is party to any scheme or operation of any kind by which any person, on payment of money, or the giving of any valuable security, or by obligating himself to pay any sum of money or give any valuable security, shall become entitled under the schem to receive from any person, a larger sum of money or amount of valuable security than the amount paid or give, by reason of the fact that other persons have paid, or given any sum of money under the scheme.
“The scheme is initiated with pure cash, there are no paper trails with credit cards or cheques,” explains Dentinger. “The scheme sounds good because individuals are usually promised upwards of $40,000 if they are on the top of the pyramid.”
Dentinger reminds residents that only approximately 10 per cent of people who invest in these schemes will reach their goals. All other participants will lose their invested money.
In addition, each person who joins these pyramid schemes could face jail time.
“Some people in the region are playing the game, some unaware of the criminal offence they are committing,” says Dentinger. “Remember, you don’t have to be the leader of the scheme to suffer the consequences that could arise.”
Dentinger insists individuals with information about schemes circulating in the area should contact the McLennan RCMP detachment at 780-324-3086.
“If you are buying into the scheme, you are buying into an illegal act,” says Dentinger. “Like everything else in life — if it sounds too good to be true, it probably is too good to be true.”
