Guyanese warned about “Blessing Loom” or “The Circle”

– used as disguise for “pyramid” scheme

Guyanese are being warned about an old scam that is resurfacing on social media during the stay-at-home period amid COVID-19 called the “Blessing Loom” or “The Circle”.

A number of Guyanese have been conned and some have positive testimonies about this scheme which promises money to people who are vulnerable and looking for a way to provide for their families especially at this challenging time.
This ploy promises that once persons contribute $5000 and recruit two people to join their circle, they will walk away with $40,000 or more. The invite directs the user to give the group administrator their monies to give to the person whose name is at the centre of an octagon-shaped playing board.
However, it is believed that eventually, the user will run out of contacts to recruit and the money will dry up. Therefore, persons are advised that the game is a scam, since the “Blessing Loom”, or “The Circle”, is disguised as a pyramid scheme, which is illegal in Guyana.
In the past two weeks, a number of persons have taken to social media to express their bad experiences with this circle.
One investor, who asked to remain anonymous, said, “I was robbed, they took my money and the circle was going good all the time. Now when they didn’t get enough persons to full the circle, all my money went down de drain because I was the last to get payout.”
“I give a police girl my money and now she is telling me that she doesn’t have my money to pay me back, and that I have to wait until she raises me and all friend’s money back,” Akeedah Henery, another investor stated.
Back in August, the Competition and Consumer Affairs Commission (CCAC) had warned about this scheme.
“Consumers need to note that, essentially, the foundation on which the pyramid scheme is built is the problem. Any plan that offers commissions for recruiting new members will inevitably collapse. The real casualties in the collapse are always the people in the bottom, with the people at the top of the pyramid protected,” the CCAC had stated.
Meanwhile, Part V of the Guyana Consumer Affairs Act, No 13 of 2011 speaks to the issue of “pyramid selling” as it clearly states:  a person shall not promote or operate a pyramid selling scheme and any person who contravenes the subsection of this Act commits an offence.
According to the Act, the “Pyramid selling scheme means a scheme that (a) provides for the supply of goods or services or both for reward; (b) that, to many participants, constitutes primarily an opportunity to sell an investment opportunity rather than an opportunity to supply goods or services: and (c) that is unfair, or is likely to be unfair, to many of the participants in that – (i) the financial rewards of many of the participants are dependent on the recruitment of additional participants; and (ii) the number of additional participants that must be recruited to produce reasonable rewards to participants is either not attainable, or is not likely to be attained, by many of the participants”.
Meanwhile, when this publication contacted the Director of the Competition and Consumer Affairs Commission (CCAC), Dawn Cush, for a comment, she explained that she was not allowed to comment on the scheme while adding that the Guyana Police Force will be dealing with such matters henceforth.
However, efforts made to contact Crime Chief Wendell Blanhum for a comment proved futile.