Following a lengthy investigation, the Winnipeg Commercial Crime Section have charged 13 individuals and a corporation, in connection with an Illegal Lottery Scheme – occasionally referred to as a Pyramid Scheme.
Police began their investigation following complaints about “Business in Motion” in and around Steinbach, Manitoba. Charges relate to activities between Spring 2008 and Fall 2009.
All of the accused have been summonsed to appear in Steinbach Court on January 13, 2011.
According to the Canadian Anti-Fraud Center, Pyramid Schemes are defined as frauds that are based on recruiting an ever-increasing number of investors. The initial promoters (those at the peak of the pyramid) recruit investors who are expected to bring in more investors, who may or may not sell products or distributorship. Recruiting newcomers is more important than selling products. No new money is created in pyramid schemes. Investors who get in early take their profits from investors who join later. At some point, no new investors can be found and as a result the last investors, who are at the bottom of the pyramid, lose their money. They also face prosecution, as pyramid schemes are illegal. – Canadian Anti-Fraud Center
