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

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

City of White Rock ponders feedback on CAC funds

Some $13 million will come to the city as a result of ongoing developments

Stargazing ‘keeps you humble,’ says Surrey astronomy enthusiast

Terry McComas shares his passion for the celestial

South Surrey-based pen-pal program aims to reduce seniors’ isolation during pandemic

South Surrey/White Rock concierge service to connects kids & seniors virtually

B.C. firefighters only responding to most life-threatening calls during COVID-19 pandemic

The directive comes after province spoke with paramedics, fire services, according to top doctor

Surrey city council moving to virtual meetings

For public hearings, people can register to speak via telephone

‘Better days will return’: Queen Elizabeth delivers message amid COVID-19 pandemic

The Queen said crisis reminds her of her first address during World War II in 1940

Emergency aid portal opens Monday, cash could be in bank accounts by end of week: Trudeau

Emergency benefit will provide $2,000 a month for those who have lost their income due to COVID-19

Education, not enforcement: B.C. bylaw officers keeping a watch on physical distancing

A kind word, it turns out, has usually been all people need to hear

COVID-19: Hospitals remain safe for childbirth, say Vancouver Island care providers

North Island Hospital has been asked to share its perinatal COVID-19 response plan

Insurance shock for B.C. condo owners

Claim-free two-year-old townhouse complex told premium will nearly triple

Canadian cadets to mark 103rd anniversary of Vimy Ridge April 9 virtually

Idea of Captain Billie Sheridan in Williams Lake, B.C. who wondered what to do in times of COVID-19

B.C. VIEWS: Pandemic shows need for adequate care home staffing

Seniors in B.C. care homes face challenging times

Most Read

l -->