Another Pyramid Con

trisontana

Tillytrotter wrote: »

A friend of mine has just mentioned it to me that she is going to a meeting in bridgend tomorrow night and is investing in it hoping to get £20K+ back within 5 weeks - its just doesnt seem true too me. I am going to wait to see what the outcome is, but reading back at all these its a very high risk to take.

Of course it's not true, except for the very small minority who will make money by effectively stealing from other people. Please sit this woman down in front of a blackboard and explain, in words of one syllable, that you cannot beat the maths. Also tell her she is breaking the law.

claire367

curlycat wrote: »

Sadly it has reached Chepstow/Caldicot and now there are two variations. One for the £3K per person and a cheaper one for £100 per head. We've been asked to join so many times and my answer is always, perhaps you will get your money back but what will you say to people you recuit who don't but know you did?
My friends aunt has taken out a bank loan for £3K to join in. It's horrific to think of these people who can't afford to gamble risking their future incomes on a scam. But when you point out the maths they just say that they know someone who has been paid out.
Apparently it's a 'box' scheme here and you are told when you are approaching the pay out.

Some friends went to the Caldicot meeting last night. It's apparently being run by 2 Barristers and I'm trying to find out their names so I can report them to The Law Society. They're claiming that what they're doing is legal as they know the law, and also that no-one will lose any money because "the committee" will pay back the £3,000 to anyone who doesn't get their payout. This is a claim I find staggering as everytime someone does get their payout, 7 other people have to lose their £3,000 somewhere down the line which means if they honour that guarantee the committee is going to be £20k out of pocket everytime someone collects.
So they're either some of the most benevolent barristers I've ever come across or they're basically lying and so committing fraud.

maninthestreet

claire367 wrote: »

Some friends went to the Caldicot meeting last night. It's apparently being run by 2 Barristers and I'm trying to find out their names so I can report them to The Law Society. They're claiming that what they're doing is legal as they know the law, and also that no-one will lose any money because "the committee" will pay back the £3,000 to anyone who doesn't get their payout. This is a claim I find staggering as everytime someone does get their payout, 7 other people have to lose their £3,000 somewhere down the line which means if they honour that guarantee the committee is going to be £20k out of pocket everytime someone collects.
So they're either some of the most benevolent barristers I've ever come across or they're basically lying and so committing fraud.

If they're Barristers, I'm a banana.

trisontana

maninthestreet wrote: »

If they're Barristers, I'm a banana.

What they actually meant was that they are baristas and work at Starbucks.

tomstickland

claire367 wrote: »

It's apparently being run by 2 Barristers and I'm trying to find out their names so I can report them to The Law Society. They're claiming that what they're doing is legal as they know the law, and also that no-one will lose any money because "the committee" will pay back the £3,000 to anyone who doesn't get their payout.

LOL. For everyone to end up with no losses then no one will profit.

Put 100 people in a room with £10 each and the only way you end up with no one losing money is to all leave with £10 each.

I would suggest that they're just liars.

People falling for this are demonstrating how their greed is stronger than logic or morals. Maybe some understand it and are prepared to take the risk that they're not the bottom of the pyramid. Probably others really are taken in by the money being "gifted" and think it's a magic scheme that generates money out of the air.

PleaseReportThisScam

Not only is this illegal under the Gambling Act 2005. It is also an offence under the Consumer Protection from Unfair Trading Regulations 2008 to promote pyramid schemes.

It is an offence for someone to engage in:

"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."

Pretty clear isn't it? A strict liability offence (meaning you don't even have to know you are doing anything wrong to be convicted). There is no statutory defence of 'gambling in a private residence' either.

There's a lot of lies circulating about this scam, the one that particularly disturbs me is that people are saying 'trading standards are happy/fine/OK with it'.

We're not.

So if anyone knows anything about it please do the responsible thing and report it (with names and addresses of the people involved please) to your local trading standards department.

nomoneyleft

PleaseReportThisScam wrote: »

Not only is this illegal under the Gambling Act 2005. It is also an offence under the Consumer Protection from Unfair Trading Regulations 2008 to promote pyramid schemes.

It is an offence for someone to engage in:

"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."

Pretty clear isn't it? A strict liability offence (meaning you don't even have to know you are doing anything wrong to be convicted). There is no statutory defence of 'gambling in a private residence' either.

There's a lot of lies circulating about this scam, the one that particularly disturbs me is that people are saying 'trading standards are happy/fine/OK with it'.

We're not.

So if anyone knows anything about it please do the responsible thing and report it (with names and addresses of the people involved please) to your local trading standards department.

Trading Standards know....

http://www.monmouthshire.gov.uk/Monmouth/English/NewsPages/Latest_News/Catering+for+everyone+at+Caldicot+Castle.htm

Greed takes over from rational thought, the trouble is that quite a few get payouts and this fuels the greedy people into a frenzy, it is stealing from others theres going to be alot of crying over spilt milk when this thing collaspses.

I have heard of teachers putting there hard earned cash in, they can't be teaching maths can they......

if so i think its time for a career change, they could loose their jobs if found out.

Trading Standards seem powerless to do alot, as the cash is handed onto those who are paid out on the night and they only know the location 24 hours before the pay out is due.

They have parties and split into different pyramids i guess to limit the damage if one goes doodars up or they get busted...

One big con, used to be women empowering women, its been around for years someone is getting rich off the back of the these poor suckers....

I reckon the credit crunch will fuel this further as people crave more cash when times are hard.

My advice is to get out of the scheme and get your cash back you may need it when the credit crunch hits home and resession has kicked in with a vengance.

giveandtake_2

Hi, Im back.....

So, when I put in my 3k in June I was a victim and now that I have been paid out I am a con-artist??? In actual fact I am a normal hard working woman who last time I looked had a fully functioning whole brain, not half a one!!

This was my (very) hard earned money and if I and many others choose to risk it then so be it!!

My sister has just lost her house due to recent events, did anyone tell her not to put her money into property 18 months ago.........NO!! Isnt everything we do one big risk??

I am a firm believer in the fact if you cant afford to lose £3000 or £1500 then dont bloody well do it, how simple is that concept?? Everyone who is involved in the Give and Take charts (yes!! that does include Men also) are fully aware of the pitfalls, it can stop at anytime if 1 or 2 people lose interest then it will fail miserably. We have a committee (unpaid!!) who rule this thing with an iron fist to ensure we are within the realms of being legal, no advertising, no emails, no Facebook and certainly no leaflets. Why dont you check out Bath Courts where we have received all the paperwork to say we are legal!!

Obviously I cannot speak for the other 500 or so charts but ours has been a pleasure to be involved in........no fallings out or catfights, just a handful of people trying to scrape through life with babies on the way and Christmas to pay for, we are NOT scam artists...

I very much disagree with the comments that just a minority people get rich of the back of others, I would say that it is the exact opposite, a huge majority of people get their money, a very small minority will fail......

giveandtake_2

Hi, Im back.....

So, when I put in my 3k in June I was a victim and now that I have been paid out I am a con-artist??? In actual fact I am a normal hard working woman who last time I looked had a fully functioning whole brain, not half a one!!

This was my (very) hard earned money and if I and many others choose to risk it then so be it!!

My sister has just lost her house due to recent events, did anyone tell her not to put her money into property 18 months ago.........NO!! Isnt everything we do one big risk??

I am a firm believer in the fact if you cant afford to lose £3000 or £1500 then dont bloody well do it, how simple is that concept?? Everyone who is involved in the Give and Take charts (yes!! that does include Men also) are fully aware of the pitfalls, it can stop at anytime if 1 or 2 people lose interest then it will fail miserably. We have a committee (unpaid!!) who rule this thing with an iron fist to ensure we are within the realms of being legal, no advertising, no emails, no Facebook and certainly no leaflets. Why dont you check out Bath Courts where we have received all the paperwork to say we are legal!!

Obviously I cannot speak for the other 500 or so charts but ours has been a pleasure to be involved in........no fallings out or catfights, just a handful of people trying to scrape through life with babies on the way and Christmas to pay for, we are NOT scam artists...

I very much disagree with the comments that just a minority people get rich of the back of others, I would say that it is the exact opposite, a huge majority of people get their money, a very small minority will fail......

tomstickland

giveandtake wrote: »

Hi, Im back.....

So, when I put in my 3k in June I was a victim and now that I have been paid out I am a con-artist??? In actual fact I am a normal hard working woman who last time I looked had a fully functioning whole brain, not half a one!!

we are NOT scam artists...

I very much disagree with the comments that just a minority people get rich of the back of others, I would say that it is the exact opposite, a huge majority of people get their money, a very small minority will fail......

Right, so where does the money come from that the vast majority recieve?