Dilemna over possible pyramid scheme

A_Nony_Mous

Hi,

A while ago, I signed up to what I now believe is a pyramid scheme - I have't recruited anyone, but I have got to know many of the people in the organisation.
There is a heavy emphasis on recruited friends, family and even others you don't know via social media or any other means available to you.
So much so that people cease selling the product/service and as such I suspect this is a pyramid scheme (as opposed to simply being an MLM/multi-level marketing where there is more emphasis on sales). Obviously pyramid schemes are illegal in the UK

My question/dilemna is, should I:
1. Walk away silently: without confirmation of the answer and in the knowledge that others will be exploited and continue to do so, as the company rolls out in other countries (that is there aim so I know this will only get bigger)?;
2. Report to the relevant authorities (anonymously): this would mean that those in the scheme do not know I have reported but may mean a less successful investigation (as I would not be active in it once I have flagged to the authorities)?; or
3. Report to the relevant authorities (non-anonymously and so being involved in the investigation): this could mean people I know in the scheme are reported and potentially aware of my involvement in any investigations and could also mean direct implications for them? These are not family or close friends but are good people who are slightly vulnerable or looking for answers and have become sucked into what they believe is a legitimate business. I would ideally like for them to be aware or investigated, as the issue is the business model and the people at the top running the business.

Looking for some thoughts - I won't know fully if it is a pyramid scheme until it's investigated but I feel each option has it's downsides and am struggling with coming to a decision.

Any thoughts, help appreciated.

MattMattMattUK

A_Nony_Mous said:

Hi,

A while ago, I signed up to what I now believe is a pyramid scheme - I have't recruited anyone, but I have got to know many of the people in the organisation.
There is a heavy emphasis on recruited friends, family and even others you don't know via social media or any other means available to you.
So much so that people cease selling the product/service and as such I suspect this is a pyramid scheme (as opposed to simply being an MLM/multi-level marketing where there is more emphasis on sales). Obviously pyramid schemes are illegal in the UK

My question/dilemna is, should I:
1. Walk away silently: without confirmation of the answer and in the knowledge that others will be exploited and continue to do so, as the company rolls out in other countries (that is there aim so I know this will only get bigger)?;
2. Report to the relevant authorities (anonymously): this would mean that those in the scheme do not know I have reported but may mean a less successful investigation (as I would not be active in it once I have flagged to the authorities)?; or
3. Report to the relevant authorities (non-anonymously and so being involved in the investigation): this could mean people I know in the scheme are reported and potentially aware of my involvement in any investigations and could also mean direct implications for them? These are not family or close friends but are good people who are slightly vulnerable or looking for answers and have become sucked into what they believe is a legitimate business. I would ideally like for them to be aware or investigated, as the issue is the business model and the people at the top running the business.

Looking for some thoughts - I won't know fully if it is a pyramid scheme until it's investigated but I feel each option has it's downsides and am struggling with coming to a decision.

Any thoughts, help appreciated.

Take option three, the longer you leave it the more people will potentially be defrauded. 

flaneurs_lobster

Any reason for not naming the "company" that runs the scheme or the products that they sell?

nyermen

Agree with option three, but if it was my decision I might feel cautious tbh.
But I do agree it needs reporting.  If it smells like a duck and quacks like a duck...

My mother nearly got involved with one of these (and she's normally more aware).  I convinced her otherwise simply by showing the "levels" of the pyramid meaning that by level 12, she needed more people than there are humans on the planet. That was a 1:6 ratio I think.

pinkshoes

There are lots of these "schemes" that are essentially pyramid schemes but try and disguise themselves as something else, many getting away with it.

Some friends of mine got into Herbalife which is essentially a starvation diet and pyramid scheme - they get you loosing weight with their shakes (well duh - it's a very low calorie diet), then if you come on board as a seller you get a huge discount. The more you sell to, the bigger the discount you get. Those people are then persuaded to also sign up to sell and get a discount, and the discount gets passed up the chain/pyramid, with someone at the top making a LOT of money.

I'd do some research and see if there have been other complaints, then consider reporting them, but some seem to get away with such schemes.

A_Nony_Mous

A_Nony_Mous said:

Thanks so far and please excuse the couple of typos (corrected below):
*I haven't recruited anyone (and am not looking to do so)...
*There is a heavy emphasis on recruiting friends, family...
*I would ideally like for them NOT to be aware or investigated, as the issue is the business model and the people at the top running the business - it is them who should be investigated.
*but I feel each option has its downsides...

Thanks anyone who replies and helps me come to a decision. 

A_Nony_Mous

flaneurs_lobster said:

Any reason for not naming the "company" that runs the scheme or the products that they sell?

Just looking for input at this stage. I may disclose but not looking to do that today. Thanks

TELLIT01

Try contacting Citizens Advice about it.  Give them as much info as possible as they may look at involving Trading Standards to investigate.  As I understand it, you as an individual can no longer access Trading Standards directly.

robatwork

There are some good investigative brains in here.

If you decide to NOT take action yourself that involves disclosing your details to authorities, then by all means disclose the company name here and those brains will investigate and see if it is pyramiddy.

Marcon

A_Nony_Mous said:

Hi,

A while ago, I signed up to what I now believe is a pyramid scheme - I have't recruited anyone, but I have got to know many of the people in the organisation.
There is a heavy emphasis on recruited friends, family and even others you don't know via social media or any other means available to you.
So much so that people cease selling the product/service and as such I suspect this is a pyramid scheme (as opposed to simply being an MLM/multi-level marketing where there is more emphasis on sales). Obviously pyramid schemes are illegal in the UK

My question/dilemna is, should I:
1. Walk away silently: without confirmation of the answer and in the knowledge that others will be exploited and continue to do so, as the company rolls out in other countries (that is there aim so I know this will only get bigger)?;
2. Report to the relevant authorities (anonymously): this would mean that those in the scheme do not know I have reported but may mean a less successful investigation (as I would not be active in it once I have flagged to the authorities)?; or
3. Report to the relevant authorities (non-anonymously and so being involved in the investigation): this could mean people I know in the scheme are reported and potentially aware of my involvement in any investigations and could also mean direct implications for them? These are not family or close friends but are good people who are slightly vulnerable or looking for answers and have become sucked into what they believe is a legitimate business. I would ideally like for them to be aware or investigated, as the issue is the business model and the people at the top running the business.

Looking for some thoughts - I won't know fully if it is a pyramid scheme until it's investigated but I feel each option has it's downsides and am struggling with coming to a decision.

Any thoughts, help appreciated.

Finding out the facts is your first step. No point agonising over what to do next if there's actually no issue to address.

penners324

pinkshoes said:

There are lots of these "schemes" that are essentially pyramid schemes but try and disguise themselves as something else, many getting away with it.

Some friends of mine got into Herbalife which is essentially a starvation diet and pyramid scheme - they get you loosing weight with their shakes (well duh - it's a very low calorie diet), then if you come on board as a seller you get a huge discount. The more you sell to, the bigger the discount you get. Those people are then persuaded to also sign up to sell and get a discount, and the discount gets passed up the chain/pyramid, with someone at the top making a LOT of money.

I'd do some research and see if there have been other complaints, then consider reporting them, but some seem to get away with such schemes.

I had someone trying on board with Herbalife 20 years ago. Saw through it fortunately