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Police call investment club just another illegal scheme

SHARE Police call investment club just another illegal scheme

PLEASANT GROVE (AP) — A get-rich-quick scheme operating in Pleasant Grove is billed as an investment club, but it is just another illegal pyramid scheme, police said.

About a dozen people asked police if the scheme is legal, said police Capt. Cody Cullimore.

The police were pretty sure it wasn't legal and double checked with the Utah Attorney General's Office.

"It's illegal, it's a third-degree felony," Cullimore said. "If it sounds too good to be true, it is."

The so-called gifting scheme involves a group of people getting together and paying $2,000 to join, officers said. Then, those people get two others to join for the same amount and the cycle continues.

"Eventually, there are eight people on the bottom level and you receive $16,000 in cash," Cullimore said.

"Someone who has invested their money is going to lose it and they will call, and we'll have a crime to investigate," Cullimore said. "Eventually the layers run out and that's when you get those eight people on the bottom who don't make any money, and that's when people get prosecuted."