MSC and Winkler Police warn: Diamond Deal isn't any Golden chance.
Winnipeg - The Manitoba Securities Commission (MSC) and also the Winkler Police Service area unit provision a joint warning to Manitobans concerning PayDiamond.com – associate Internet-based diamond distribution company supposedly operative from urban center. proof indicates the corporate could also be operative a alleged strategy, that has cropped up in Manitoba. in a very Pyramid or Ponzi theme, investors area unit secure high returns. They operate by paying interest to investors with cash brought in by new investors. These new investors area unit attracted by stories of individuals claiming to be obtaining high returns, and in some cases by receiving tiny amounts of cash back within the early stages of the theme. These schemes inevitably collapse, and investors lose cash.
PayDiamond’s model is to boost cash from investors that is pooled into a fund to get raw diamonds that the corporate purchases, cuts, polishes and markets. capitalist returns area unit allegedly from the profits of the pool they need invested with in.
Investors area unit referred to as “affiliates” and get mediate $200 and $36,000, for terms up to fifty weeks. Investors area unit alleged to receive a weekly payment till the tip of the term once the diamonds area unit oversubscribed with profits to be split with the affiliates.
“There could be a serious stress on recruiting new investors,” says Len Terlinski, Master of Science investigator, “An ‘affiliate’ is paid supported the number invested with by individuals he or she recruits. this is often a red flag. to boot, the ‘affiliate memberships’ perhaps be thought-about a interchange a security, and PayDiamond isn't registered to sell securities in Manitoba.”
MSC has recently received calls concerning the legitimacy of PayDiamond, whereas the Winkler Police Service has received reports of native residents World Health Organization are recruited into the theme.
“We area unit awake to a Winkler resident World Health Organization has recruited a minimum of 5 people into the theme,” says Constable Chris Kalansky of the Winkler Police Service. “This individual has convinced friends and family to speculate in PayDiamond, and has profited through achievement fees. this is often a classic Pyramid/Ponzi theme model.”