Police warn residents of Gifting Circle pyramid scheme
MEDICINE HAT, AB — The Medicine Hat Police Service is warning the public about a pyramid scheme which they say is operating in the city.
According to police, the Gifting Circle is a pyramid scheme that has been reported in several cities across Western Canada.
The scheme sees a recruiter asking eight victims to pay a gift of $5,000 each to the recruiter. The victims are then asked to recruit another eight people to pay $5,000, with everyone in theory making $40,000 if the pyramid continues.
Police say in reality, the model collapses after the first level, as the initial recruiter leaves with the $40,000 and then goes to another city or territory to defraud another eight victims.