By Collin Gallant on December 23, 2017.
Medicine Hat News
Police are warning residents that a so-called “gifting circle” operating in the city is too good to be true.
The Medicine Hat Police Service said Friday that the scam operates when a recruiter solicits a $5,000 donation from eight people, then asks each of them to recruit eight other donors, and so on.
In theory, the total builds and everyone makes money.
In reality, say police, it’s a pyramid scheme, illegal and ends with the original recruiter pocketing all the money.
“This model will inevitably collapse leaving victims without a reciprocal payout,” according to a release by police on Friday. It notes a number of similar reports throughout western Canada this year.
It should not be considered a legitimate investment, say police, and promoting a pyramid scheme is illegal in Canada.
“The Medicine Hat Police service would like to remind our community to be leery of get-rich-quick or easy money ventures,” the release concludes.
Anyone with questions or concerns should contact the Medicine hat Police major crimes section at 403-529-8420.
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