(OFT) Three arrests in suspected pyramid scheme investigation

The OFT continued its criminal investigation into a suspected unlawful pyramid scheme operating in the South West of England and South Wales by carrying out further raids in the Bristol area today.

OFT officers executed entry warrants at home addresses in Bristol and East Harptree accompanied by police, who arrested three women alleged to be involved in the establishment, operation and promotion of the suspected pyramid scheme. The OFT also served notices at a number of other addresses requiring individuals and businesses to produce documents relevant to the investigation.

The OFT is working closely with Avon and Somerset Police and South West England Scambusters and these raids are connected to arrests carried out in January and earlier this month.

The scheme appears to be aimed at women, with each participant promising to enlist two more members. The OFT estimates that up to £18 million may have passed through the scheme since May 2008 with thousands of consumers paying up to £3000 each to join.

The OFT is asking anyone with information regarding any suspected pyramid scheme to contact Consumer Direct on 08454 04 05 06 or at http://www.consumerdirect.gov.uk.

The Consumer Protection from Unfair Trading Regulations 2008 (CPRs) prohibits the establishment, operation or promotion of any scheme where money is made primarily from recruiting other people rather than from the sale of goods and services. Breach of the prohibition is an offence punishable by up to two years imprisonment and/or an unlimited fine. The OFT's investigation is still ongoing and as such no assumption should be made that any person has committed an offence.