The Director of the Asset Recovery Unit of the Regional Security System (RSS) has issued a warning to citizens of the region to beware of easy money.
“We notice there is a significant increase in pyramid schemes that are deemed to be fraud in our member states,” says Grenville Williams.
Williams disclosed that it’s something that has been occupying the attention of the financial intelligence unit and the law enforcement agencies across the RSS jurisdictions.
He explained how the pyramid scheme works.
According to the RSS official, persons who enter the scheme early are asked to make investments and invite others to join.
Williams said it is the financial contribution of persons who join later that are utilised to pay the initial entrants to the scheme.
He noted that ultimately the people at the top would receive payment but in due course, because of the number of persons involved, ultimately there would not be sufficient financial resources to cover the payment to all persons.
Williams asserted that as a result, the majority of persons would find themselves without any investment, ultimately losing all of the money they would have invested.
The Regional Security System was created in 1982 to counter threats to the stability of the region in the late 1970s and early 1980s.
Its current members are Antigua and Barbuda, Barbados, Dominica, Grenada, Saint Kitts and Nevis, Saint Lucia and Saint Vincent and the Grenadines.