Pyramid Scheme Scam - Convictions
Discussion
Another Pyramid scam.
Story here for those interested but just wanted to leave pic of the main ring-leaders for your late afternoon viewing, er...'pleasure'?
Story here for those interested but just wanted to leave pic of the main ring-leaders for your late afternoon viewing, er...'pleasure'?
It's good news that this gang have been caught and punished, albeit lightly, but WTF were the 'investors' thinking?
Mail said:
During the trials, jurors heard how the scheme operated around pyramid charts.
Each of 15 spaces was filled with a participant who paid £3,000 and introduced two friends, who also paid that amount.
Once the chart was filled, the eight people on the bottom of the chart paid their £3,000 to the person on the top, called the 'Bride'.
Participants collected their winnings at specialist prize-giving pamper parties, where they would be asked a series of simple questions before being handed the £24,000.
A set £1,000 fee from the payout was deducted, with £600 shared between charities and £400 used to pay costs the committee occurred.
Miles Bennett, who prosecuted both trials, said potential recruits were invited to the parties at the Battleborough Grange Hotel in Burnham-on-Sea, owned by Carol Chalmers.
The 'champagne evening celebrations' were attended by up to 300 people, who paid £2 entry for games and drinks.
Mobile phone footage recorded at one of the parties showed Laura Fox shouting: 'We are gambling in our own homes and that's what makes it legal.
'This is Carol's home, we have been friends since we were 11-years-old. We are going to do these games, that's what makes it legal and tax free.'
After games were played, the winnings were handed over to the Brides at the top of their charts in cash - with as much as £240,000 handed out in one evening.
But Mr Bennett said the celebration evenings were a 'commercial practice', with the committee holding meetings and entrants writing their names on a signing in book before entering.
'This wasn't a bunch of ladies sitting around playing bridge,' Mr Bennett said. 'This was a committee and Laura Fox ruled those nights with a rod of iron.'
'This wasn't a kitchen hobby, this was a scheme that sucked in a lot of people and which worked on the promise of them receiving riches way beyond their initial investment.'
Each of 15 spaces was filled with a participant who paid £3,000 and introduced two friends, who also paid that amount.
Once the chart was filled, the eight people on the bottom of the chart paid their £3,000 to the person on the top, called the 'Bride'.
Participants collected their winnings at specialist prize-giving pamper parties, where they would be asked a series of simple questions before being handed the £24,000.
A set £1,000 fee from the payout was deducted, with £600 shared between charities and £400 used to pay costs the committee occurred.
Miles Bennett, who prosecuted both trials, said potential recruits were invited to the parties at the Battleborough Grange Hotel in Burnham-on-Sea, owned by Carol Chalmers.
The 'champagne evening celebrations' were attended by up to 300 people, who paid £2 entry for games and drinks.
Mobile phone footage recorded at one of the parties showed Laura Fox shouting: 'We are gambling in our own homes and that's what makes it legal.
'This is Carol's home, we have been friends since we were 11-years-old. We are going to do these games, that's what makes it legal and tax free.'
After games were played, the winnings were handed over to the Brides at the top of their charts in cash - with as much as £240,000 handed out in one evening.
But Mr Bennett said the celebration evenings were a 'commercial practice', with the committee holding meetings and entrants writing their names on a signing in book before entering.
'This wasn't a bunch of ladies sitting around playing bridge,' Mr Bennett said. 'This was a committee and Laura Fox ruled those nights with a rod of iron.'
'This wasn't a kitchen hobby, this was a scheme that sucked in a lot of people and which worked on the promise of them receiving riches way beyond their initial investment.'
Mail said:
A father-of-four who invested into the 'Give and Take' scheme has been struggling financially for the last five years - after he failed to receive a payout.
Dave Gough, from Caldicot in South Wales, paid £3,000 to join the scheme in 2009 after being told 'nobody would lose'.
The driving instructor, who has four sons, never reached the payout position so lost his investment and is still paying it off.
Mr Gough was initially dubious of the scheme but caved in after three months of persuasion and began to plan his future with his winnings.
'It sounded absolutely fantastic, there was no way I was going to lose,' he told BBC News.
'Initially, like anyone else I thought this sort of scheme was too good to be true, but when someone keeps going on and on and you hear from other people who have had payouts from it, then you do reach a point when you think, hold on, this is a good scheme.'
Mr Gough said he began to make plans with his family for the £23,000 they expected to receive once he reached the top of his chart.
He said: 'We had a little dream that we could sort out our debts, because everyone has debts, loans and so forth, and perhaps have a clean slate to start again.
He added: 'Four years on I'm still living with the consequences. There's still an amount of that money that I'm still paying back now,'
http://www.dailymail.co.uk/news/article-2760857/Greedy-women-19million-rich-quick-pyramid-scheme-duped-10-000-investors-cash-convicted-new-laws.htmlDave Gough, from Caldicot in South Wales, paid £3,000 to join the scheme in 2009 after being told 'nobody would lose'.
The driving instructor, who has four sons, never reached the payout position so lost his investment and is still paying it off.
Mr Gough was initially dubious of the scheme but caved in after three months of persuasion and began to plan his future with his winnings.
'It sounded absolutely fantastic, there was no way I was going to lose,' he told BBC News.
'Initially, like anyone else I thought this sort of scheme was too good to be true, but when someone keeps going on and on and you hear from other people who have had payouts from it, then you do reach a point when you think, hold on, this is a good scheme.'
Mr Gough said he began to make plans with his family for the £23,000 they expected to receive once he reached the top of his chart.
He said: 'We had a little dream that we could sort out our debts, because everyone has debts, loans and so forth, and perhaps have a clean slate to start again.
He added: 'Four years on I'm still living with the consequences. There's still an amount of that money that I'm still paying back now,'
rehab71 said:
furrywoolyhatuk said:
I can't believe people still sign up for these things no matter how they are veiled.
I find it staggering how people can be so stupid! There's a saying isn't there, 'a fool and his money.....'Taking a ghoulish interest in others misfortunes...
If it's a 15 member pyramid (according to reports) that's 15 x £3000 = £45,000 per tier, they paid out up to £24,000 at the pamper parties (WTF?) and charged people to attend, too.
So has someone pocketed £20k per scheme - about 50% of the takings? £9 million gone walkabout?
Is this correct (and if it is the punishments are looking unduly lenient)?
If it's a 15 member pyramid (according to reports) that's 15 x £3000 = £45,000 per tier, they paid out up to £24,000 at the pamper parties (WTF?) and charged people to attend, too.
So has someone pocketed £20k per scheme - about 50% of the takings? £9 million gone walkabout?
Is this correct (and if it is the punishments are looking unduly lenient)?
StevieBee said:
Another Pyramid scam.
Story here for those interested but just wanted to leave pic of the main ring-leaders for your late afternoon viewing, er...'pleasure'?
Those three aren't the main ring leaders, they were merely found guilty of being involved and given suspended sentences.Story here for those interested but just wanted to leave pic of the main ring-leaders for your late afternoon viewing, er...'pleasure'?
These are the 6 ringleaders.
Gassing Station | News, Politics & Economics | Top of Page | What's New | My Stuff