Investigation looms as ‘pyramid scheme’ targets island's young people

Monday 02 July 2018

Detectives are considering whether to launch a full-scale investigation into an alleged pyramid scheme that has sparked strong warnings from global financial authorities and now appears to be targeting young people in Jersey.

Police say that iMarketsLive could cause islanders to make significant financial losses.

The internet-based business purports to offer users the tools and training to become experienced financial traders for a sign-up fee of over $200 and an additional monthly payment of around $160. Members are then offered commission if they can encourage more people to sign up.

Since its launch, UK, French, Belgian, South American and numerous other global authorities have issued alerts. The UK Financial Conduct Authority advised users to be “especially wary” of the product. Meanwhile, Jersey Police warned that the scheme is “likely to result in financial loss to members of the public.” 

They said that recruitment meetings had already occurred locally, with younger adults being particularly targeted, and that further sessions had been arranged for each Wednesday at 19:00. 

Not only is such a service illegal, as the business is offering an ‘unauthorised’ financial service, Police also warned that iMarkets “has the appearance of being a Pyramid Scheme” – a type of financial fraud revolving around offering incentives for recruiting more people.

Express also found evidence of the product being marketed on a local Facebook forum to over 15,000 islanders.

But under such schemes, recruitment becomes increasingly difficult as more members join - the unsustainability of the structure is one of the reasons why such schemes are illegal.

Inspector Louise Clayson, who is part of the Police Financial Crime Unit, told Express that “alarm bells started ringing” as soon as they heard about the scheme because it showed the “classic” markers of financial fraud. “If it sounds too good to be true, it often is,” she said.

At this stage, she said it was impossible to know whether the local recruitment sessions were being run by people from abroad with malicious intent or simply “innocent people who got caught up.” 

Police have now called upon the Jersey Financial Services Commission (JFSC) to find out more about iMarketsLive and are considering whether to launch a full-scale probe into the service.