Police are advising the public to be aware of an investment scheme currently circulating the Island. Global Cohesive Economics (GCE) is targeted mainly at people with strong religious beliefs. The scheme promises quadruple returns on investments in excess of $500.

The GCE scheme and schemes of a similar nature are well known to Fraud Unit officers and numerous complaints have been received in the past from people who have lost large amounts of money on the scams.

They are unlawful and anyone running one of these schemes is liable to prosecution.

Det. Sgt. David Geraghty of the Bermuda Police Fraud Unit said the scheme operates in a similar fashion to a Ponzi or a pyramid scheme, a fraudulent investment operation that involves paying returns to investors out of the money raised from subsequent investors, rather than from profits generated by any real business.

He said a maths professor at the Bermuda College who was a Police witness in a similar case of fraud explained that it was only possible for 16 percent of people investing in the scheme to get their money back or make a profit.

Every other person will lose their entire investment with little or no recourse to recovery of their investment he said.

The GCE investment scheme is an offence against the criminal code and against the regulations of the Investment Business Act.

Det. Sgt. Geraghty said: ?Because the scheme is in it?s early stages, advertised or distributed in pamphlet form, we want to educate the public and prevent them from losing any money rather than trying to investigate an offence after it has occurred.?

Ponzi or Pyramid schemes are aimed at people because of their association with a particular group and the GCE investment opportunity is aimed at people with strong religious beliefs.

?If they receive a recommendation from a friend or an associate of the group they are more likely to invest because this installs a false sense of confidence,? Det. Sgt. Geraghty said.