Gifting circle. Cloud. Birthday gift.
Whatever the name, local Mounties say it's illegal.
And now, two Maple Ridge women have been charged with running a pyramid gifting scheme.
A year ago, Coquitlam RCMP issued repeated warnings about a popular "cloud" scheme being illegal.
The Mounties alleged the scheme has been evolving for years, with new members being recruited or invited to pay a gift of between $1,000 and $5,000 to join. Each new member is then expected to recruit more people to pay in to the bottom of the pyramid until they reach the top and either get or share in a $40,000 "birthday gift" payoff.
“Whether you call it a ‘gifting circle,’ a ‘birthday gift,’ a ‘cloud,’ ‘people helping people,’ or ‘new boss life,’ the essential element of expecting a much higher payment in return makes this an illegal pyramid scheme,” said Coquitlam RCMP Cpl. Mike McLaughlin in a press release. “People who buy into this scheme are putting themselves at risk of criminal charges.
“Variations of this pyramid scheme often encourage people to use pseudonyms. The organizers also regularly change small details of the scam or claim that they’ve found a legal loophole, or claim that their scheme is endorsed by a police officer or tax official.”
Chrystal Lee Lyons, 44, who police allege went by the pseudonym of "Purple Shadow," is charged with four counts of conducting a lottery. Esther Ayshia Vandenbrink, 56, who police suspect used the alias "Party Girl," is charged with one count of conducting a lottery.
The release said anyone asking them to be involved in such a scheme should contact the police in their jurisdiction. In Coquitlam, call the non-emergency number at 604-945-1550 and ask for the economic crime unit.
