OUTLAWED

In a bill to be published within days by the Government, Pyramid "gifting" operations such as the 'Hearts' scheme could become illegal and those who organise them fined or even imprisoned.

The schemes, which have been sweeping across the UK, work on trust and have caught out the wealthy as well as the poor.

A number of Asian women in the Blackburn area are involved in a scheme featuring hearts to represent the 'gift'. No-one can join unless invited by a friend already involved and they have to supply all their contact details.

They are told the scheme promises to deliver up to £10,500 from an initial payment of £1,500.

Initial investors pay up and are then expected to recruit other people to do likewise, allowing the original recruits to move up a level in the pyramid.

Investors are told that when the top of the pyramid is reached the recruit receives a top pay-out and leaves the scheme to make way for a new set of "winners". The government says it wants to protect the poor, who have lost thousands of pounds, when the schemes become unsustainable.

Since a warning about such schemes was published in Asian Image, we received complaints from a number of investors, all of whom wished to remain anonymous. One investor told us, "This particular scheme is targeting Muslim women. It began a week before Ramadan with meetings around Blackburn."

"I found out about it after going to an introductory meeting. There were two women involved who have made a lot of money."

Another investor told us, "At the initial presentation one of the women was saying she had managed to pay off her mortgage and bought a brand new car after joining the scheme."

"Since the negative press reports some people have stepped aside and are keeping a low profile."

A third investor said she had been forced to cut her losses, "The problem is I have had to cut my losses and have lost my money.

"None of the women I've spoken too know who to turn to.

"I'd like my money back but I very much doubt I will get it back."

"Meetings are still going on because the people who have joined have to 'sell' the idea to others."

She added, "The problems occur when people just got too greedy in the end."

The scheme is similar to the Hearts scheme which caught out celebrities including Cilla Black earlier this year.

According to the Financial Services Authority the schemes are called pyramid schemes because there are hundreds of people at the bottom paying cash to join and just a few at the top.

Chris Allen, Head of Blackburn with Darwen Trading Standards, said, "We have received an anonymous tip off and whilst we cannot comment on individual schemes we would advise anyone considering investing in schemes of this nature to be very wary as their money is more often than not likely to be wasted."

A spokesman for Lancashire County Council, said, "We are not actually aware of this scheme in Lancashire but it sounds like a good number of other schemes which do surface from time to time."

"Many similar schemes disappear within a few months and great care is needed before investing. Some of these schemes are illegal and some aren't. We urge people to take great care before getting involved."