MSC and Winkler Police warn: Diamond Deal is No Golden Opportunity.
Investors are called “affiliates” and buy in between $200 and $36,000, for terms up to 50 weeks. Investors are supposed to receive a weekly payment until the end of the term when the diamonds are sold with profits to be split with the affiliates.
“There is a heavy emphasis on recruiting new investors,” says Len Terlinski, MSC investigator, “An ‘affiliate’ is paid based on the amount invested by people he or she recruits. This is a red flag. Additionally, the ‘affiliate memberships’ maybe be considered a trade in a security, and PayDiamond is not registered to sell securities in Manitoba.”
MSC has recently received calls about the legitimacy of PayDiamond, while the Winkler Police Service has received reports of local residents who have been recruited into the scheme.
“We are aware of a Winkler resident who has recruited at least five individuals into the scheme,” says Constable Chris Kalansky of the Winkler Police Service. “This individual has convinced friends and family to invest in PayDiamond, and has profited through recruitment fees. This is a classic Pyramid/Ponzi scheme model.”
Members of the public are advised to contact MSC or their local police if they believe they have been targeted by a fraud attempt. MSC’s anti-fraud line is 1-855-FRAUD-MB.
The public can also visit recognizeinvestmentfraud.com for more information on common frauds and scams.