Eight arrested for pyramid scheme

The Pubic Security Police (PSP) have arrested eight women, seven local and one from Hong Kong, aged 40 to 64, who are suspected of conducting pyramid schemes selling beauty products, nutrition products and other goods, local media TDM Chinese radio reported.
PSP said that the group has been operating for around a year and has recruited at least 100 members, with illicit gains involved in this case exceeding one million renminbi.
“There are two ways for the members to make illicit gains: one is to introduce new members to the group, for which they can receive one per cent of the membership fee as commission for bringing in each new member; the other way is through sales of the products, for which two per cent will be given,” said the PSP spokesperson.
Police say they received a tip-off and launched an operation on a shop in Iao Han district on Tuesday, where they arrested three people believed to be the core members or masterminds of the group. Another four people with other members below them were also arrested following investigation.
The police added that the group dangle large discounts and bonuses as incentives to lure more members to join them and that their main targets are Macau residents. The police said they don’t exclude the possibility of arresting more individuals.