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

City council deferred moving forward on a proposed development in Wildstone, requesting a meeting with the developer to get clarification on project details. Photo submitted.
Cranbrook city council debates proposed Wildstone development

Cranbrook city council held off on moving forward with a proposed apartment… Continue reading

Interior Health is reporting a COVID-19 exposure at Selkirk Secondary in Kimberley. Bulletin file.
COVID-19 case identified at Selkirk Secondary in Kimberley

Interior Health is conducting contact tracing

Cranbrook Arts will finally open the doors to their brand new gallery space on Friday, June 18th, 2021 at 4pm. To see what is behind these doors, be sure to check out the exhibit, Kootenay's Best, running until Labour Day weekend. (Cranbrook Arts file)
Cranbrook Arts’ inaugural exhibit, Kootenay’s Best, opens this Friday

The exhibit features over 50 Kootenay-based artists and will run until Labour Day Weekend

The Kootenay International Junior Hockey League met for their AGM and announced a number of new initiatives, new awards and changes in their executive committee, as well as the starting date for the 2021-22 season. Paul Rodgers file.
KIJHL announces start dates for 2021-22 season

Season set to begin Oct. 1 with league still following all health guidelines

Calvin Dickson photo.
Severe thunderstorm watch in effect for East Kootenay

Conditions favourable for the development of thunderstorms, hail and heavy rain

People watch a car burn during a riot following game 7 of the NHL Stanley Cup final in downtown Vancouver, B.C., in this June 15, 2011 photo. THE CANADIAN PRESS/Geoff Howe
10 years ago: Where were you during the 2011 Vancouver Stanley Cup Riots?

Smashed-in storefronts, looting, garbage can fires and overturned cars some of the damage remembered today

(Black Press Media file)
Dirty money: Canadian currency the most germ-filled in the world, survey suggests

Canadian plastic currency was found to contain 209 bacterial cultures

(pixabay file shot)
B.C. ombudsperson labels youth confinement in jail ‘unsafe,’ calls for changes

Review states a maximum of 22 hours for youth, aged 12 from to 17, to be placed in solitary

Grace (left), a caribou that was born in a maternal pen north of Revelstoke, is alive and well said the province. It appears she even has a calf. Maternity pens aim to increase caribou calf survival by protecting them from predation until they are older and less vulnerable. (Contributed)
For the first time in years, caribou numbers increasing near Revelstoke

North herd growing but south herd still concerning

Eleonore Alamillo-Laberge, 6, reads a book in Ottawa on Monday, June 12, 2017. THE CANADIAN PRESS/Sean Kilpatrick
Parents will need to fight ‘COVID learning slump’ over summer: B.C. literacy experts

Parents who play an active role in educating their children this summer can reverse the slump by nearly 80%, says Janet Mort

Kelowna General Hospital. (File photo)
COVID-19 outbreak at Kelowna General Hospital declared over

Three people tested positive for the virus — two patients and one staff — one of whom died

The border crossing on Highway 11 in Abbotsford heading south (file)
Western premiers call for clarity, timelines on international travel, reopening rules

Trudeau has called Thursday meeting, premiers say they expect to leave that meeting with a plan

The B.C. government’s vaccine booking website is busy processing second-dose appointments, with more than 76 per cent of adults having received a first dose. THE CANADIAN PRESS/Jonathan Hayward
B.C.’s COVID-19 infections, hospitalizations stable for Tuesday

108 new confirmed cases, 139 in hospital, 39 in intensive care

Most Read