Police Advisory On Gold Investment Scheme

November 7, 2014

The Bermuda Police Service and the Department of Consumer Affairs are advising the public to exercise caution when participating in local investment schemes, particularly when return is promised following the recruitment of others.

Police Media Relations Manager Dwayne Caines said, “The Bermuda Police Service and the Department of Consumer Affairs take this opportunity to advise residents to exercise caution when participating in local investment schemes, particularly when return is promised following the recruitment of others.

“Both are aware of a gold investment scheme in current operation, which promises the potential investor no upfront costs, yet the gold product is offered far in excess of normal market prices.

“Those persons involved in the promotion or operation of such schemes should carefully consider potential offences committed under the Exchange Control Act 1972, the Consumer Protection Act 1999 and the Criminal Code 1907 which, if convicted, carries a maximum sentence of 7 years imprisonment.”

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Comments (46)

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  1. Me says:

    Thank you bps. I got too many invites. I knew it was too good to be true.

    • I totally agree with @ Me, also Bernews is there anyway that the names of the companies,or affiliates can be named so people know whom to avoid, I asked this because just this past week there was a serious of meetings held promising good returns and you do have to make a initial payment when you join up. the information was researched and the website seem very legit, but it would be interesting to see if they are the ones in question and are they authentic.

      • Sigh... says:

        What type of advisory is this if we don’t know the name of the company?

    • townguy says:

      Lets define terms here what is a Pyramid scheme? and more importantly is the scheme legal or illegal?
      1. just because it looks illegal doesn’t mean it is remember Trayvon Martin..wearing a hoodie doesn’t make you a criminal …irresponsible reporting and investigating simple as that…
      2. almost every organizational chart takes on that “shape” and how true it is that the CEO at the top makes the most.
      A illegal “Scheme” is one where value flows up and no value flows down all legitimate referral business have this that’s why Amway and thousands of other companies thrive and exist to this day (including this Gold thing)..Bernie Madoff conducted an illegal one he took money and gave nothing back but a false promise. or you put money in and you have to wait your turn ..kind of like a pension scheme (ooops but true PS if you don’t make it to 65 poof where is your money??)
      there are some other “untruths” in the report Ive researched the company and of course the false outweighs the truth online ..BUT the people involved do NOT INVEST IN ANYTHING the gold program is not an investment program they simply buy gold for themselves from a legitimate e-commerce company and tell others where to get it is that illegal? is receiving sales commissions illegal? if that’s the case I know many a salesman and investment banker that should be locked up.
      the Price if the product because the product (gold) is not just any gold its is a superior grade 999.9 fineness and is derived from a LMBA London Bullion Market Association accredited refinery (would they associate with a shady scam? think again) there are unique features that make it well worth it: 1.the associated affiliates can store gold for free as the accumulate many other online “sellers” charge for this service. 2. There are security features not available with other producers and as a matter of fact a few online gold sites are more expensive without the perks that this company in question offers so the ” far in excess of normal market prices” statement is misleading you get what you pay for. further the average person cannot buy in bulk when it comes to precious metals of course we know the benefits of buying in bulk so yes it is unfair to take the spot price and divide it and make a blanket statement it is cheaper to buy a gallon than the pint.
      There is a movement afoot the state of Utah and others legislated gold AS money there are gold ATM machines in the US. Bermuda is myopic and behind the times research BRICS…learn and investigate the truth and report that.

      • Creamy says:

        If your “returns” are linked to you getting more suckers, er I mean investors, then it’s a pyramid scheme.

    • townguy says:

      Everyone has an opinion …there are many referral based programs out there some better than others this one needs to be looked at closely. I was very surprised with the information behind it all. As for the company these affiliates are attached to seems to be legitimate and based in Germany where there are very tough Business laws, also they operate under the strict guidelines of the WTO World Trade Organization as an e-commerce company like Amazon and I see that they have successful operations in 120+ countries drama free. Ive seen YouTube videos testing the gold for purity and as promised it is indeed 24K gold 999.9 fineness in fact. Ive also see that these affiliates carry a MasterCard branded card that is also branded with the Karatbars name so one must ask would Mastercard align itself with a scam ..I think not. as I looked deeper the message and education behind the product GOLD is very enlightening and profound. Research men such as Robert Kiyosaki, Peter Schiff, John Embry, Mike Maloney, Matt Rettick to name a few and it seems like these folks may be on to something.

      • brigadoner says:

        ha. If you have to go on a rant to defend it, it’s not defensible.

  2. Confusion says:

    Its good to see that the police have looked out for the public (months) after this started.

    To bad they have their facts wrong…https://www.youtube.com/watch?v=o9tIWYC6h2U#t=152

    I remember when the police said this about Amway LOL! Clearly they were wrong about that.

    • filobedo21 says:

      But remember all network marketing businesses were under suspicion, things only got a bit better after Amway, spent millions of dollars fighting the Fortune 500 companies and finally in 1979 they won their case. I know nothing about the gold business. Always these pronouncements are meant to frighten people rather than protect them, and then the business collapse.

      • VJ says:

        Sometimes the police have to protect people from their own stupidity and lack of good judgment. If they didn’t warn you, they would be the first people you would go running to if you lost all of your money. When you are looking for somebody to blame (because you all never blame yourselves) it would probably be the authorities if they hadn’t placed an advisory. And note that this is all this is- an ADVISORY. They aren’t saying don’t do it, they are just saying to be careful. They cannot be faulted for that.

        Having said that, I can’t say if this latest gold scheme is legit or not because I don’t know. I did note with interest that one of the promoters is a former police officer, so I would hope he got all of his ducks in a row.

  3. hmmm says:

    Basically a pyramid scheme.

    • frank says:

      the banks do this every day take your money invest it but don’t give you none of the return
      eg. last month one bank ran an ad invest $25000 for one year at 0.70% after I year they give you $175
      the bank for that time if they put the money out for 300day at 2%
      check what they make .banks are legal money sharks

      • Moojun says:

        They would make $325 profit for the year. So what’s your point? And where on Earth are you going to make 2% on a one year investment Frank? If you feel you can do better, then go ahead. The banks are simply offering an accessible alternative to anyone who doesn’t want to take on investment volatility. fair play to them if the people come knocking.

        Perhaps you, Frank, could enlighten us as to where you are making a 2% per annum risk free return there days?

        • Moojun says:

          ‘these’

        • Carl says:

          Familiarize yourself with the term “Fractional reserve Banking” then you will soon realize that with your 25k deposit the bank will have created additional loans to the value of +-250k and collecting interest on all those loans of +-300k ($300,000) and they only paid $175 out in interest for your 25K.

          A good place to start is here: http://hiddensecretsofmoney.com/videos/episode-1

  4. aceboy says:

    Who is behind these schemes?

  5. Me says:

    Those that hit dislike got sucked up by the scheme

    • ShowUp ... don't just be there says:

      I hit your dislike button. I did not get sucked uo by the scheme. Very judgemental statement that is … and very i correct.

  6. Terry says:

    Damn.
    There goes me selling the Tuckers Cross.

    • Terry says:

      Why the dislikes. Is it because I penned the comment?
      The heading is about gold.
      Get it?
      I have gold. Bought and paid for in a bank 120 oz’s.
      And investment.
      Only thing I buy are groceries, gas and airline tickets.
      Get real folks.

  7. Affiliates says:

    Curious to see what the ‘affiliates’ have to say and what a bummer for those that just signed up.

  8. Doubting says:

    From the logic of this statement “Police Media Relations Manager Dwayne Caines said, “The Bermuda Police Service and the Department of Consumer Affairs take this opportunity to advise residents to exercise caution when participating in local investment schemes, particularly when return is promised following the recruitment of others.” all MLM type opportunities are illegal, which include ebay.

    hmmm Can you explain/describe a pyramid scheme?

  9. Guess Who says:

    Claiming to be christians. A good way to catch people out. That is why they are worth $5M as per the gossip columns.

  10. shawn says:

    -_- yes pyramid schemes are new. the smartest of the bunch gets caught up in those -_-

    • Evie says:

      Yeah just like the government pension scheme only those at the top get paid yes a pyramid by design smdh

  11. research says:

    So if they are so worried about what’s going on and is concerned about the public then why hasn’t it been put on local news channels so everyone can hear their views…

  12. Vote for Me says:

    It is always recommended to get good advice before participating in any investment scheme.

    For the most recent plan to invest in gold, the promoters should get advice from a reputable Bermudian finance or legal professional to review the program. One concern would be the authenticity of the investment. For example, if you make the investment, how sure are you that you can either get the underlying gold or get your initial investment returned.

    The fact that you get paid a commission as you recoup others might not be inherently wrong since many salespeople earn commissions.

  13. Takbir Karriem Sharrieff says:

    The biggest Pyramid scheme in the world is found on the American Dollar Bill…as it is called The Almighty Dollar.!It is depicted with a pyramid with a detached eye at the top.It is referred to as the ….all seeing eye….!It has the whole world chasing it…..to its doom.The Almighty is G-D….and the all seeing eye is the Creator of the Heavens and the Earth and all that is in between.!Put your faith in that and you will be successful ……put your faith in chasing that dollar bill and ……you are hell bound….in this life and beyond…Real Talk…Sorry you got caught up……in a pyramid scheme…!

  14. townguy says:

    The media outlets and authorities have done a fantastic job of confusing people on the subject of pyramids and their association to MLM or referral based marketing . The US government (FTC – Federal Trade Commission) has publicly sued companies for running an illegal pyramid scheme and announced it to media; then the media has announced it to the public with very accusative statements like, “(Name of company) is an illegal pyramid scheme – ACTION IMMINENT!”

    Then, after researching the company, the plantiff drops the case because of no wrongdoing, and the company is allowed to operate. But the media doesn’t announce this – therefore the public continues to think that a particular company is a pyramid scheme/scam when it’s not. Pretty soon people just generally think that all MLM or referral marketing companies are pyramids when they are not.

    This is the primary reason for the “controversy” around MLM. The controversy comes from people being confused on what is a legal and ethical MLM business and what is an illegal pyramid..

  15. Theothersidebda says:

    So according to their website, I can buy a gram of gold for $47. That sounds exciting until you realize you can buy the same gram of gold for $37 in the open market. So why are propel doing this again? Oh because you also make money by offering your friends and family yo buy gold at a 30% markup…sounds like a great way to spread the love. If anyone is interested in “investing” in this scheme, I’ll save you the trouble. For every dollar you plan on investing with them, give it to me and I’ll give you $.90 back. You’ll thank me for only have lost $.10 on every dollar. Sure the price of gold may go up, but why would anyone willingly overpay for any good by 30%?????

    • google - ignorance says:

      @theothersidebda Compare apples to Apple’s when price shopping. There are different grades of gold. According to your comment I should be able to buy a C class Mercedes-Benz for the same price as a E class Mercedes-Benz.

      Ask your local jeweler about currency grade gold versus regular gold.

      Your welcome for a free lesson in gold.

      Lastly it’s funny how people are commenting but not asking the right questions. For example why is it that the name of the company was not published…I will let you debate over That for a bit then I would give you the quote from the police officer who actually put this on here!

  16. Bermy_realist says:

    Sounds like townguy is upset he may be losing business. Ya scam has been uncovered

    • townguy says:

      actually I’m just starting even if I don’t tell anyone about this which I probably wont ..that is not for me some people are just too opinionated (case in point here) …I’m very happy buying Gold for myself as I now understand the difference between paper currency and a hard asset (gold) I suggest those with opinions read some books on the subject. the guy that showed me had a book written my some Mike Maloney guy he happens to be friends with the author of “rich dad poor dad” and Donald Trump??!!!!… I found some youtubes on video called “Hidden Secrets of Money” …look it up if you dare …VERY INFORMATIVE I always thought that all seeing eye on the back of the USD$ was a little sinister. The Company in question is in good international standing…case closed…. its called deep research.

  17. Bermuda Jake says:

    Why would anyone willingly overpay for any good by 30% – and I add – when the good is declining in value at the same time?

    http://www.bloomberg.com/video/gold-prices-what-will-it-take-to-reverse-gold-s-slump-8Nvn3UMcQeOIi_VgT8gPzQ.html

    What hurts the most is that the buyers are people trying to build their wealth and should be encouraged to do so, not taken advantage of.

    Good luck, Goldfinger.