Pyramid scheme sunk
High Court winds up illegal selling firm
A pyramid selling business which used a pirate ship theme to tempt investors has been wound up after a Department of Trade and Industry (DTI) investigation.
Treasure Traders Corporation Ltd told potential members they could pocket £7,000 if they joined the scheme and persuaded others to jump on board.
Investigations by the DTI revealed in May 2005 40 ‘captains’ had signed up alongside 232 other members. Each had paid deposits of at least £1,200. The figure for investor losses is unknown but is likely to run into tens of thousands of pounds.
The High Court ruled that Treasure Traders was in breach of the Fair Trading Act 1973 because it offered participants the prospect of receiving payments or other benefits by taking part in the scheme and enticing other people to join the scheme. Its practices were also contrary to the Lotteries and Amusements Act 1976.