A financial expert has slammed Police and Government for inaction on pyramid schemes, which he said were plaguing the Island and preying on the poor.

Chief Executive Officer of Bermuda Investment Advisory Services Robert Pires hit out after Police refused to investigate a finance scheme which is currently being touted round the Island.

Run by Italian-based firm Future Strategies, the Pentagono system promises people who sign up the chance to earn more than $116,000.

But Cheryl-Ann Lister, chairman of the Bermuda Monetary Authority (BMA), said her watchdog would be looking into Future Strategies after The Royal Gazette alerted her to the scheme.

She said: "It appears to be a classic pyramid scheme.

"We will take a closer look at this and then determine whether or not it's something for us or the Police. We would deal with it if it was considered to contravene the Bankers' Act.

She explained that the powers of the BMA were limited and most financial crime was a Police matter.

A Police spokesman said pyramid schemes were illegal under the Lotteries Act but the Force was not looking into Pentagono.

He added: "We are aware of it but we have not had a complaint about it. I really can't comment any further about this.'' But he confirmed the Force was "investigating certain activities involving pyramid schemes earlier this year''.

However the spokesman could not confirm whether there was an investigation into the scheme which a number of officers were reported to have been involved in.

In February, Police Commissioner Jean-Jacques Lemay ordered all his officers and administrative staff to stay away from get-rich schemes after it was revealed some officers were holding meetings about them on Police premises.

Yesterday, Mr. Pires said: "I am concerned about senior people in the Police.

"The Police should be investigating it. Why is this not being investigated? "Are there some higher up people in the Police and the Government who have a vested interest and don't want to pursue it? "There is far too much of this going on. It's like an epidemic.'' "It's seem like a lot of people don't want to do anything. It's a political hot potato.

"It's been suggested that the reason why authorities are concerned about pyramid schemes is that they don't want black people to get ahead.

"The Government needs to show leadership instead of waiting for people to get burned so they will learn by being burned.'' Martha Myron, Programme Chairwoman of the Financial Planning Association of Bermuda, warned people to be wary of the Pentagono scheme.

She said: "It doesn't sound to me like an investment programme I recognise.

"Whenever that happens it's always a good idea to ask a lot of questions and compare it with other investments before making a choice.'' Mr. Pires said investment schemes are required by law to have legal prospectus stating people's rights and obligations.

"If they don't, then that's the first clue that it's not a legal business.

These prospectuses are normally 30 or 40 pages.

"You need something to protect yourself. If there's no legal prospectus there's no legal anything. People should run, not walk, away from this scheme.

I am concerned about this.'' Pentagono organiser Gladstone Eve denied he was helping to operate a pyramid scheme.

But he refused to say whether a legal prospectus would be given before people signed up so they knew their rights.

And he then went on to admit that the Future Strategies Website did not have this information and people had to sign up to the scheme before the full information was forthcoming.

Punters signing up for the scheme get a card which Pentagono organisers claim gets holders hotel and car discounts across the world.

They then sign up others and as more join beneath them money gets passed up the line to them.

Mr. Eve said: "It's completely legal. In a pyramid scheme one person ends up with the cash. This is a wealth distributing club.''