Fair Trading Minister Margaret Keech today warned Queenslanders not to be dazzled by a new pyramid scheme dealing in diamonds.

Mrs Keech said the Canadian Diamond Traders illegal pyramid scheme was being promoted on the Internet and in seminars.

“It promises consumers large cash and diamond rewards,” she said.

“The Office of fair Trading believes the precious stone scam originated in Canada, recruiting unsuspecting consumers to invest $100 for larger returns.

“While we have only had eight enquiries regarding the scheme we are aware that seminars are possibly being organised on the Gold Coast, SunshineCoast and in Brisbane, so consumers beware.

“It is promoted as a legitimate multi-level precious stone scheme asking consumers to encourage others to join in order to move up the chain eventually collecting a diamond and $3000 cash.

“The scheme also encourages you to rejoin, which allows it to continue, promising higher profits and more diamonds.”

Mrs Keech has issued a strong warning to Queenslanders intending to participate in pyramid schemes.

“Under the Fair Trading Act 1989 organising and participating in pyramid schemes is illegal and anyone approached to take part should simply say no,” Mrs Keech said.

“People who invest in the scheme or encourage others to join such schemes in order to generate income or rewards can be fined up to $40,500 under the Act.

“People are attracted to pyramid selling schemes because of the prospect of earning money fast but be warned you will get nothing back.

“Consumers should take extra care with overseas promotions asking you to recruit people rather than sell a genuine product. In most cases Australian laws cannot protect your money once you send it overseas.

“Chain letters, mailing lists and money making clubs offering unrealistic earnings are also illegal so don’t get involved,” Mrs Keech said.

If you have received information about this or any other pyramid scheme please report it to the Office of Fair Trading on 13 13 04 or visit www.fairtrading.qld.gov.au for more information.

Media inquiries: David Smith 3225 1005 or Julie Struber (OFT) 3119 0066