Update July 17, 2018: Charges have been laid against two suspects involved in this gifting pyramid scheme. Chrystal Lee Lyons, 44, of Maple Ridge who went by the pseudonym Purple Shadow is facing four lottery-related charges. Esther Ayshia Vanderbrink, 56 and also from Maple Ridge, is also facing a criminal charge. She used the alias Party Girl.
Mission RCMP have arrested four people in connection with a fraudulent gifting scheme that could involve thousands of people across the Lower Mainland.
The gifting circles or clouds, as they are known, recruit new participants who are asked to bring in two additional people. Once a new group of eight people is created, the new recruits are asked to contribute a $5,000 gift to the person at the top of the pyramid.
Police say the cash gift is known as a “birthday spot,” and participants are advised to use fake names to avoid suspicion from banks.
“There are virtually no winners in this type of pyramid scheme,” said inspector Annette Fellner. “People who are involved in this kind of fraud are imaginative. They sound convincing and say the right thing to make you believe it’s perfectly legal when it isn’t.”
Mission RCMP began investigating in September 2017 after being tipped off that employees, contractors and volunteers with the District of Mission were running these large-scale gifting schemes “within the RCMP detachment,” according to a news release.
Police executed four search warrants on Feb. 20, and the four people arrested have since been released while the investigation progresses.
Police say they’re aware of 11 incidents involving these gifting circles in the Lower Mainland. The schemes usually target law-abiding women who are asked to give $5,000 to gain entry into the “cloud” or “circle.”
People in the circles use an app called Telegram Messenger to communicate, according to Mounties.
Police are warning the public that those involved in these schemes could face financial loss, tax implications and criminal charges.
