Golfer2
June 19th, 2006, 10:44 PM
DLCA warns residents of latest pyramid scheme to hit V.I.
By JOY BLACKBURN and TIM FIELDS
Friday, June 16th 2006
ST. THOMAS - The V.I. Department of Licensing and Consumer Affairs has issued a warning about a new pyramid scheme operating in the territory.
Dubbed "Life Without Debt," the scheme has already generated 15 complaints to the department from people who have not received the financial returns it promises, said Alli Paul, director of consumer protection services for DLCA.
"I'm sure there will be many more," he said.
In a written statement, the department cautioned that "this is just another of many pyramid schemes that will result in the loss of thousands of dollars when it collapses."
Emphasizing that all pyramid schemes are illegal, the statement said participation "could result in criminal or civil penalties or both if you willingly participate in defrauding others."
DLCA is sending the complaints directly to V.I. Inspector General's Office, Paul said.
"Anything that sounds too good to be true is most likely not true," he said. "I know times are hard and people need money, but we've got to be alert out there for scams that aim to take hard-earned money out of people's pockets."
The Inspector General's Office is already investigating a similar scam called The Women's Gifting Circle.
In gifting circle scams, participants put down an initial payment in hopes of receiving a much larger payout based on recruiting others to participate in the scheme.
Operators of pyramid schemes often describe the scams as investment opportunities, high-profit business ventures, gift tables, chain referral investments, or investments that are similar to a "partner hand."
The statement said Life Without Debt, The Women's Gifting Circle and an earlier scam, E-Z Wealth By Design, have resulted in the "loss of hundreds of thousands of dollars to local residents."
Officials are asking people who have been approached to participate in any of these schemes or who have been victimized by them to report it.
Victims may do so by contacting the Department of Licensing and Consumer Affairs, Division of Consumer Services at 774-3130 in the St. Thomas-St. John District or at 773-2226 on St. Croix. They can also go to the office in person to file a written complaint or contact Charles Allen at the Inspector General's Office at 774-3388.
By JOY BLACKBURN and TIM FIELDS
Friday, June 16th 2006
ST. THOMAS - The V.I. Department of Licensing and Consumer Affairs has issued a warning about a new pyramid scheme operating in the territory.
Dubbed "Life Without Debt," the scheme has already generated 15 complaints to the department from people who have not received the financial returns it promises, said Alli Paul, director of consumer protection services for DLCA.
"I'm sure there will be many more," he said.
In a written statement, the department cautioned that "this is just another of many pyramid schemes that will result in the loss of thousands of dollars when it collapses."
Emphasizing that all pyramid schemes are illegal, the statement said participation "could result in criminal or civil penalties or both if you willingly participate in defrauding others."
DLCA is sending the complaints directly to V.I. Inspector General's Office, Paul said.
"Anything that sounds too good to be true is most likely not true," he said. "I know times are hard and people need money, but we've got to be alert out there for scams that aim to take hard-earned money out of people's pockets."
The Inspector General's Office is already investigating a similar scam called The Women's Gifting Circle.
In gifting circle scams, participants put down an initial payment in hopes of receiving a much larger payout based on recruiting others to participate in the scheme.
Operators of pyramid schemes often describe the scams as investment opportunities, high-profit business ventures, gift tables, chain referral investments, or investments that are similar to a "partner hand."
The statement said Life Without Debt, The Women's Gifting Circle and an earlier scam, E-Z Wealth By Design, have resulted in the "loss of hundreds of thousands of dollars to local residents."
Officials are asking people who have been approached to participate in any of these schemes or who have been victimized by them to report it.
Victims may do so by contacting the Department of Licensing and Consumer Affairs, Division of Consumer Services at 774-3130 in the St. Thomas-St. John District or at 773-2226 on St. Croix. They can also go to the office in person to file a written complaint or contact Charles Allen at the Inspector General's Office at 774-3388.