OFT announces further criminal charges in suspected pyramid scheme case

133/09 13 November 2009

The OFT has brought charges against two women from the Bristol area in connection with an ongoing investigation into a suspected unlawful pyramid scheme.

Rita Lomas, 44, of Whitchurch, Bristol, and Jane Smith, 45, of Bishopsworth, will appear at Bristol Magistrates Court on 9 December 2009 on charges of having established, operated or promoted an unlawful pyramid promotional scheme, having invited another to join a chain gift scheme and knowingly participated in the promotion, administration or management of a chain gift scheme between February 2008 and April 2009. These charges follow those brought against three other women, Tracy Laurence, Rhalina Yuill and Sally Phillips, who are due to appear at Bristol Magistrates Court on the same date.

The investigation into Lomas and Smith was carried out by South West Scambusters who, along with officers from Avon and Somerset Police, executed entry warrants at the homes of both women in April. The case was initially referred by Bristol Trading Standards to the South West Scambusters Team. This is a pro-active regional Trading Standards resource and forms part of the South West Regional Enforcement Team based at Portishead, Bristol.

NOTES

1. The OFT is working closely with South West England Scambusters and Avon and Somerset Police in the ongoing case.

2. Schedule One of the Consumer Protection from Unfair Trading Regulations 2008 (CPRs) prohibits the establishment, operation or promotion of any scheme where money is made primarily from recruiting other people rather than from the sale of goods and services. Breach of the prohibition is an offence under Regulation 12 and is punishable by up to two years imprisonment and/or an unlimited fine.

3. The CPRs contain a general prohibition against unfair commercial practices and in particular prohibitions against misleading actions, misleading omissions and aggressive commercial practices. The Regulations are enforceable through the civil and criminal courts.

4. Sections 43(1)(a) and 43(1)(b) of the Gambling Act 2005 (GA05) make it an offence to invite another to join a chain gifting scheme or to knowingly participate in the promotion, administration or management of a chain gifting scheme. A person guilty of such an offence is liable on summary conviction to imprisonment not exceeding 51 weeks and/ or a fine of up to £5000.

5. The investigation is still ongoing and as such no assumption should be made that any person has committed an offence.

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