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Police continue investigation -- Outdated legislation hampers prosecution of pyramid schemes

Police are continuing their investigations into pyramid schemes in the hope that Director of Public Prosecutions Khamisi Tokunbo will reverse his decision not to prosecute.

The Royal Gazette revealed this week that Mr. Tokunbo has recommended that no one be prosecuted, even though a former senior Crown Counsel in his own department gave an opinion that the schemes are illegal.

As the get-rich-quick schemes were sweeping the Island at the beginning of the year, Police Commissioner Jean-Jacques Lemay admitted he had received complaints that a Police station was used by officers to tout for pyramid business.

He also stated that "one or more'' officers had been carrying out pyramid scheme business during working hours.

In February, Mr. Lemay issued a statement saying: "The Attorney General's Chambers has expressed the view that the pyramid schemes contravene the Lotteries Act 1944 and the Criminal Code of 1905.'' An informed source told The Royal Gazette that although the schemes do break the Lotteries Act, it is difficult to get a conviction because it is unclear who is organising them.

Very few people made complaints to the Police and it is understood participants did not want to testify -- only to get their money back.

The source said: "Although it is technically illegal under the Lotteries Act and there is case law in the UK, the Lotteries Act in Bermuda is inadequate to deal with it.

"It is like trying to put a square peg in a round hole. With so many people involved, who was the organiser? "The reality is that it is not easy, based on the circumstances, to have a clean and crisp prosecution.

"You have to balance the interests of justice in Bermuda. You could have had a six-week trial that potentially results in a maximum of six months in prison if you are lucky.

"The DPP may have decided that he could have put the court's resources to better use.

"The Police have been telling people about these things for years but there is nothing you can do to combat stupidity.

"If someone stands over Flatts Bridge and throws in $1000 and thinks they'll get $2000 back, what can you do?'' The Consumer Protection Act, which was passed in December does explicitly outlaw pyramid schemes and offers a clear remedy to tackle those involved.

Police continue pyramid scheme probe But is is understood the Act has not yet been activated because it has not been published in the Official Gazette.

In January, Police launched an internal disciplinary inquiry into the involvement of officers as well as a criminal investigation.

In July they submitted their file to Mr. Tokunbo, who decides whether to prosecute.

Police are now planning to submit more files to Mr. Tokunbo in a bid to persuade him to prosecute those involved.

A Police spokesman said: "We are going to have further liasons with the DPP and the investigation is ongoing.

"It is our intention to submit more files, but it is a lengthy process. He advises us whether he thinks a prosecution is worthwhile.

"He had his reasons for thinking it wasn't, but we are hoping he will consider further material.'' DPP DIRECTOR PUBLIC PROSECUTIONS