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Minister for Fair Trading Judy Spence said today she was infuriated with the organisers of a pyramid selling scheme for continuing its quest to "rip off" Queensland consumers.

Ms Spence said Crown Law advice sent to her Office last week clearly spelt out that The Cash Club was illegal and those taking part in it could face fines of up to $40,000.

Legal action has been taken against promoters of the scheme.

The Minister said the Cash Club was a classic pyramid selling scheme, similar in design to other notorious scams such as the Concorde or Plane Game.

Here is how they work:

"At the start, each club has a 'president', two 'vice presidents' and four 'committee members'. Each 'committee member' must recruit two new members, making eight recruits in all.

"When this happens, all eight joining fees are remitted to the 'president', and the club is split into two new clubs, with the former 'vice presidents' becoming the new 'presidents' of the successor clubs.

"So long as new recruits are found, the scheme keeps duplicating itself and money is paid out. At each split, the total number of members doubles.

"This is the fallacy of the scheme. Numbers become impossible after only a few splits. The schemes must eventually collapse, and the longer they go on, the more people are burnt.

"Don't let it happen to you," Ms Spence warned consumers.

The Minister said the Cash Club appeared to be a well-organised scheme.

"Whenever I make a public statement about pyramid selling schemes, the operators launch into an orchestrated campaign of disinformation.

"In this case, they have harangued and harassed journalists from regional newspapers. They have instigated a flood of calls to offices of Fair Trading around the state complaining about the hard line I have adopted on this issue.

"Make no mistake. I will continue to condemn pyramid selling schemes. They are ILLEGAL and I will not tolerate them in Queensland," Ms Spence said.

For further information: Ellen McIntyre, Senior Media Advisor - 0408 732 491