YOU CAN NOW DISCUSS THIS NEWS ON OUR FORUM JUST CLICK HERE!

 

Minister for Fair Trading Judy Spence today warned Queenslanders of the perils of illegal pyramid schemes, after an Office of Fair Trading operation uncovered evidence of prohibited activities.

Fair Trading officers executed a search warrant on Tuesday at the Brisbane residence of the Queensland organiser of Alpha Club.

The operation netted reams of documents as well as computers and computer disks - all of which will assist in finalising an investigation.

Documents seized included contracts, receipts and lists of all Alpha Club members in Queensland.

Ms Spence said anyone who signed up as a member and paid their membership fee of more than $6000 within the last fortnight should ask for their money back.

"Alpha Club offers a contractual 14 day cooling off period, and new members have the right to expect the club to honour that offer and refund their money," she said.

"The Queensland Fair Trading Act prohibits all people from participating in or promoting pyramid selling schemes.

"Pyramid schemes are illegal throughout Australia.

"Already this year the Queensland Office of Fair Trading has successfully prosecuted four people for involvement in a pyramid scheme, known as Cash Club.

"The people behind Alpha Club have a bad track record in Australia. In March a NSW court ordered them to pay almost $25,000 in fines and costs, following an investigation by the NSW Office of Fair Trading.

"Besides being illegal, involvement in a pyramid scheme is also financial folly.

"The schemes invariably fail, leaving participants out of pocket and also out of favour with family and friends, who are frequently targeted as potential members."

The Minister thanked Queenslanders who came forward with complaints about Alpha Club's activities and co-operated with the Office of Fair Trading.

A fact sheet on pyramid selling schemes is available from your local Office of Fair Trading or the website: www.fairtrading.qld.gov.au.

Media Contact: Fiona Kennedy 3227 8825 / 0409 061 266