https://calgary.ctvnews.ca/gifting-circle-scam-could-see-2m-in-losses-across-western-canada-1.4409849

I don't know the accused personally but his sister is married to my cousin. He's from a prominent Mormon family from Cardston. I believe he was part of a (mostly LDS) investor group who lost a ton of $$'s in a failed condo development scheme in West Lethbridge over a decade ago. Looks like he was trying to make it all back by scamming other Mormons. Typical.

Beware of anyone looking for "investors".

Real Estate is normally a good investment. Just look at TSCC. Except for the 2008 crash when everyone lost their butts. I don’t know whether we’ve recovered or become Japanified.

babyloncansuckit Wrote:
-------------------------------------------------------
> Real Estate is normally a good investment. Just
> look at TSCC. Except for the 2008 crash when
> everyone lost their butts. I don’t know whether
> we’ve recovered or become Japanified.

You're turning Japanese, I really think so.

It's hard to believe that anyone who paid into it could have believed that it was a legitimate investment scheme. If I was inclined to place a bet, I would bet that most of the participants were betting on the odds that there would be enough downline players to keep the scheme going long enough for them to cash out. The obvious fact that at some point there would be a collection of players paying in and getting nothing back probably didn't bother them at all.

Unless they were preying on mentally ill people or lying about the nature of the scheme, it could plausibly be characterized as a victimless crime. Of course if the managers of the scheme didn't follow the "rules" of the scheme and simply pocketed all the money, it would clearly be a case of fraud.

investment scheme that is quite traditional in East Asian societies.

The idea is that a circle is formed and everyone contributes a certain amount each month. One member of the circle is then given the monthly pool to use to invest in a business or business improvements. That member is expected to contribute the fixed monthly contribution that other members make PLUS repayment in installments of the pool amount that she was given. The idea is then that the size of the monthly pool is a bit bigger each month, so that the longer you wait your turn the bigger pile you will get for your own investment.

Apparently, the scheme often worked out quite well and was a good source of seed money for many kinds of small businesses. But as populations became more mobile and it was easier to leave one's community and move to another country or distant location, the scheme became more and more unreliable due to circle members running away with the loot and being impossible to find.

It sounds like your basic chain letter. Send in $1, get back hundreds! I can't believe that people are still falling for this sort of thing.

People will fall for anything. Ever been to Utah?



Edited 1 time(s). Last edit at 05/07/2019 07:59PM by kathleen.

Lol, yes, but I somehow managed to avoid the MLM crowd. For that matter, teachers often like to engage in MLMs as well. Anything to make an extra buck.

Just curious if this is another southern alberta stalward.

Not familiar enough with Stirling other than to know it's still significantly mormon.

https://lethbridgeherald.com/news/lethbridge-news/2019/05/03/former-school-secretary-pleads-guilty-to-theft/

Stirling is VERY Mormon. It's 12 miles SE of me and is the easternmost town in our Moridor. And her surname is from an old line pioneer Mormon family.