Tweet
Three arrests in suspected pyramid scheme investigation
48/09 29 April 2009
The OFT continued its criminal investigation into a suspected unlawful pyramid scheme operating in the South West of England and South Wales by carrying out further raids in the Bristol area today.
OFT officers executed entry warrants at home addresses in Bristol and East Harptree accompanied by police, who arrested three women alleged to be involved in the establishment, operation and promotion of the suspected pyramid scheme. The OFT also served notices at a number of other addresses requiring individuals and businesses to produce documents relevant to the investigation.
The OFT is working closely with Avon and Somerset Police and South West England Scambusters and these raids are connected to arrests carried out in January and earlier this month.
The scheme appears to be aimed at women, with each participant promising to enlist two more members. The OFT estimates that up to £18 million may have passed through the scheme since May 2008 with thousands of consumers paying up to £3000 each to join.
The OFT is asking anyone with information regarding any suspected pyramid scheme to contact Consumer Direct on 08454 04 05 06 or at the Consumer Direct website.
The Consumer Protection from Unfair Trading Regulations 2008 (CPRs) prohibits the establishment, operation or promotion of any scheme where money is made primarily from recruiting other people rather than from the sale of goods and services. Breach of the prohibition is an offence punishable by up to two years imprisonment and/or an unlimited fine. The OFT's investigation is still ongoing and as such no assumption should be made that any person has committed an offence.
NOTES
1. The OFT launched a criminal investigation into a suspected pyramid scheme in January with the arrests of three women. The OFT also visited several premises and seized evidence. Those arrested were released on bail to return at a later date. See press release 17-09.
2. Two women were arrested in the Bristol area earlier this month in an operation involving the police and the SouthWest Scambusters.
3. The CPRs contain a general prohibition against unfair commercial practices and, in particular prohibitions against misleading actions, misleading omissions and aggressive commercial practices. The Regulations are enforceable through the civil and criminal courts.
4. Establishing, operating or promoting a pyramid promotional scheme where a consumer gives consideration for the opportunity to receive compensation that is derived primarily from the introduction of other consumers into the scheme rather than from the sale or consumption of products.
5. Information on the most common scams and advice on how to avoid them is available on the Consumer Direct website or by calling 08454 04 05 06. Consumer Direct is a telephone and online consumer advice service funded by government and managed by the Office of Fair Trading. It operates in partnership with local authority Trading Standards Services to offer consumers clear, practical and impartial advice and information. Consumer Direct has around 400 trained advisors in 12 contact centres across England, Wales and Scotland.
48/09 29 April 2009
The OFT continued its criminal investigation into a suspected unlawful pyramid scheme operating in the South West of England and South Wales by carrying out further raids in the Bristol area today.
OFT officers executed entry warrants at home addresses in Bristol and East Harptree accompanied by police, who arrested three women alleged to be involved in the establishment, operation and promotion of the suspected pyramid scheme. The OFT also served notices at a number of other addresses requiring individuals and businesses to produce documents relevant to the investigation.
The OFT is working closely with Avon and Somerset Police and South West England Scambusters and these raids are connected to arrests carried out in January and earlier this month.
The scheme appears to be aimed at women, with each participant promising to enlist two more members. The OFT estimates that up to £18 million may have passed through the scheme since May 2008 with thousands of consumers paying up to £3000 each to join.
The OFT is asking anyone with information regarding any suspected pyramid scheme to contact Consumer Direct on 08454 04 05 06 or at the Consumer Direct website.
The Consumer Protection from Unfair Trading Regulations 2008 (CPRs) prohibits the establishment, operation or promotion of any scheme where money is made primarily from recruiting other people rather than from the sale of goods and services. Breach of the prohibition is an offence punishable by up to two years imprisonment and/or an unlimited fine. The OFT's investigation is still ongoing and as such no assumption should be made that any person has committed an offence.
NOTES
1. The OFT launched a criminal investigation into a suspected pyramid scheme in January with the arrests of three women. The OFT also visited several premises and seized evidence. Those arrested were released on bail to return at a later date. See press release 17-09.
2. Two women were arrested in the Bristol area earlier this month in an operation involving the police and the SouthWest Scambusters.
3. The CPRs contain a general prohibition against unfair commercial practices and, in particular prohibitions against misleading actions, misleading omissions and aggressive commercial practices. The Regulations are enforceable through the civil and criminal courts.
4. Establishing, operating or promoting a pyramid promotional scheme where a consumer gives consideration for the opportunity to receive compensation that is derived primarily from the introduction of other consumers into the scheme rather than from the sale or consumption of products.
5. Information on the most common scams and advice on how to avoid them is available on the Consumer Direct website or by calling 08454 04 05 06. Consumer Direct is a telephone and online consumer advice service funded by government and managed by the Office of Fair Trading. It operates in partnership with local authority Trading Standards Services to offer consumers clear, practical and impartial advice and information. Consumer Direct has around 400 trained advisors in 12 contact centres across England, Wales and Scotland.
