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CB blasts bogus pyramids
The Central Bank yesterday warned the public to be cautious of participating in what it described as fraudulent and deceptive pyramid schemes. In a statement, the Bank said it was cautioning the public of the risk associated with such money-making schemes which might eventually collapse for want of new recruits.

It said the Government would introduce legislation to protect the public from dangers of participating in such fraudulent schemes and take criminal action against the operators.

The Bank warned the people that whether they realised it or not, they would eventually be deceived by such pyramid schemes. 'The scheme can collapse at any stage if it runs out of prospective buyers and if the scheme collapses the majority of the members, mostly those who are the newest recruits of the pyramid, would not only lose anticipated commission but also substantially overvalued products," it said.

The Central Bank warned the public after many complaints were received of easy money-making schemes that promised a return to persons who participated by the introduction by them of additional participants to the scheme.

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