Investor alert: ‘Split games’ pyramid scheme circulating in B.C.

Investor alert: ‘Split games’ pyramid scheme circulating in B.C.

British Columbia Securities Commission issues warning about scheme selling virtual shares

Don’t be fooled by pyramid schemes operating as so-called “split games” in B.C., the independent provincial government agency responsible for regulating capital markets is warning.

According to a release from the British Columbia Securities Commission (BCSC) on Tuesday, virtual shares in “split games” are being marketed and sold in the Lower Mainland’s Chinese community by B.C.-based promoters of FullCarry and International Money Tree.

The shares are apparently not backed by any underlying asset, the release said, and can only be bought and sold online.

The promoters claim rising demand will drive up the price of the shares and when the price hits a certain threshold, the shares “split,” perhaps doubling or tripling in number and returning to their original price.

Promoters also limit how many shares users can convert to conventional currency, and charge a 10 per cent transaction fee for selling them. Meanwhile, they focus on recruiting more participants by giving buyers bonuses for each additional person they bring into the game.

“Whenever someone promises high returns with little or no risk, that’s a warning sign,” said Doug Muir, director of enforcement for the BCSC. “These split games, like other pyramid schemes, depend on more and more people buying in.

“You could easily lose your entire investment.”

READ MORE: Insurance group ‘dishonestly raised over $47 million’

FullCarry, formerly known as Furuida Global or FRD Global, purports to be incorporated in the British Virgin Islands and based in Dubai. The BCSC said B.C.-based promoters for FullCarry are known to have held meetings in Vancouver and Richmond, and operate a private WeChat group.

International Money Tree purports to be headquartered and operated in Singapore.

READ MORE: Surrey man banned from involvement in securities transactions

The BCSC said games being promoted in B.C. are similar to online investment schemes that have surfaced in China and Malaysia, one of which resulted in organizers being sanctioned by authorities for issuing unauthorized payment instruments.

Anyone who has information about a split game is urged to contact the BCSC Inquiries line at 604-899-6854 or 1-800-373-6393, or to file a complaint online.



karissa.gall@blackpress.ca

Like us on Facebook and follow us on Twitter

Just Posted

A tent housing a mobile vaccination clinic. (Interior Health/Contributed)
Over 5K jabbed at Interior Health mobile COVID-19 vaccine clinics

The clinics have made stops in more than 40 communities since launching last week

Provincial Health Officer Dr. Bonnie Henry talks about B.C.’s plan to restart the province during a press conference at Legislature in Victoria, Tuesday, May 25, 2021. THE CANADIAN PRESS/Chad Hipolito
Interior Health COVID-19 cases falling slower than the rest of B.C.

More than a third of provincial cases announced Thursday came from the Interior

A tent housing a mobile vaccination clinic. (Interior Health/Contributed)
Second dose vaccinations accelerating throughout region: Interior Health

To date, more than 675,000 doses have been administered throughout the region

Okanagan Lake (File photo)
Thompson-Okanagan ready to welcome back tourists

The Thompson-Okanagan Tourism Association expects this summer to be a busy one

Aerial view of a wildfire at 16 Mile, 11 kilometres northwest of Cache Creek, that started on the afternoon of June 15. (Photo credit: BC Wildfire Service)
Wildfire at 16 Mile now being held

Wildfire started on the afternoon of June 15 at 16 Mile, east of Highway 97

A small pod of Pacific white-sided dolphins pass by close to shore in Campbell River June 16, 2021. Still capture from video courtesy of Kimberly Hart
VIDEO: Dolphin sunset captured from Vancouver Island shore

Spectacular setting for view of travelling pod of Pacific white-sided dolphins

A dose of the Pfizer-BioNTech COVID-19 vaccine is pictured at a vaccination site in Vancouver Thursday, March 11, 2021. THE CANADIAN PRESS/Jonathan Hayward
NACI advice to mix vaccines gets varied reaction from AstraZeneca double-dosers

NACI recommends an mRNA vaccine for all Canadians receiving a second dose of a COVID-19 vaccine

A aerial view shows the debris going into Quesnel Lake caused by a tailings pond breach near the town of Likely, B.C., Tuesday, Aug. 5, 2014. THE CANADIAN PRESS/Jonathan Hayward
Updated tailings code after Mount Polley an improvement: B.C. mines auditor

British Columbia’s chief auditor of mines has found changes to the province’s requirements for tailings storage facilities

A North Vancouver man was arrested Friday and three police officers were injured after a 10-person broke out at English Bay on June 19, 2021. (Youtube/Screen grab)
Man arrested, 3 police injured during 10-person brawl at Vancouver beach

The arrest was captured on video by bystanders, many of whom heckled the officers as they struggled with the handcuffed man

Patrick O’Brien, a 75-year-old fisherman, went missing near Port Angeles Thursday evening. (Courtesy of U.S. Coast Guard)
Search for lost fisherman near Victoria suspended, U.S. Coast Guard says

The 75-year-old man was reported missing Thursday evening

Bruce Springsteen performs at the 13th annual Stand Up For Heroes benefit concert in support of the Bob Woodruff Foundation in New York on Nov. 4, 2019. (Greg Allen/Invision/AP)
Canadians who got AstraZeneca shot can now see ‘Springsteen on Broadway’

B.C. mayor David Screech who received his second AstraZeneca dose last week can now attend the show

New research suggests wolves can be steered away from the endangered caribou herds they prey on by making the man-made trails they use to hunt harder to move along. THE CANADIAN PRESS/Nathan Denette
Culling cutlines, not B.C. wolves, key to preserving caribou herds: researcher

The government has turned to killing hundreds of wolves in an effort to keep caribou around

Gary Abbott (left) and Louis De Jaeger were two of the organizers for the 2014 Spirit of the People Powwow in Chilliwack. Monday, June 21, 2021 is Indigenous Peoples Day. (Jenna Hauck/ Chilliwack Progress file)
Unofficial holidays: Here’s what people are celebrating for the week of June 20 to 26

Indigenous Peoples Day, Take Your Dog to Work Day, Onion Rings Day all coming up this week

Most Read