Police warn public of pyramid scheme making rounds in Nelson
By Nelson Daily Staff
Nelson police are sounding the alarm bells on a pyramid scheme making its rounds in the Heritage City under the disguise of a “women’s circle”.
The scheme, or “circle” as NPD Sgt. Paul Bayes describes, requires women to provide a $5,000 gift to another woman in the circle.
Bayes said eventually the first woman will move to a different level in the Circle and where she is promised a gift herself.
“This gift is anticipated to be much larger than the gift originally given,” Bayes explains.
“Although those behind the women’s circle claim it is not a hierarchy or pyramid, it is.”
“The only way for individuals to receive gifts greater than what they are contributing is through the loss of others in “circle”,’ Bayes adds.
Police said because there is no new money created in the circle, the scheme is simply a fraud that allows the original recruiters to take money from the new members.
Eventually, when no new recruits come into the circle, the gifters will have lost their money.
Pyramid schemes are illegal under section 206 (1) (e) of the Criminal Code and Competition’s Act.
“Income received from the scheme must also be declared with Canada Revenue and could result in tax evasion charges if not declared,” Bayes said.
Police want any victims to this fraud to contact Nelson RCMP or the Canadian Anti-Fraud Centre at 1-888-495-8501.
Day at the beach turns into nightmare for young couple
Monday (Sept. 9) a young couple got a surprise during an outing to Red Sands beach north of Nelson.
During the outing, the couple was confronted by a male who immediately began to yell at and threaten them for using the beach.
The couple tried to keep their distance, but the 59-year-old male, known to the Nelson police, continued his tirade, threatening the couple and throwing rocks at the pair.
When the man backed away for a moment the couple managed to flee the area unharmed and called police.
Thanks to an excellent description of the offender, officers located the man a short distance away.
The man is scheduled to appear in court in Nelson to answer to charges of uttering threats and assault with a weapon.
