Issue Date:  -  Friday, 1 October 2004

Chin fined for amazing pyramid scam

A pyramid scheme operator and promoter was convicted and fined $5,000 in Perth District Court this afternoon.

Julie Fong-Yoke Chin (also known as Julie Yoke Jacobs and Julie Chin) of East Fremantle pleaded guilty today to one charge of promoting the Amazing Grace Benefactor Project (Amazing Grace) pyramid scheme.

Mrs Chin was fined $5,000 and ordered to pay $2,000 compensation for breaches of the Fair Trading Act 1987.

In sentencing Mrs Chin, His Honour Judge Martino said that it was a serious offence which would result in most people inevitably losing money, an obvious evil in pyramid schemes.

"This is a major victory for consumers everywhere," Consumer Protection Commissioner Patrick Walker said.

"Consumer Protection records show that 148 people lost a total of $296,000 through this scam," Mr Walker said.

In May 2001 the Department of Consumer and Employment Protection received an e-mail complaint linking Mrs Chin to another alleged pyramid scheme. After a warning letter from Consumer Protection, Mrs Chin promised to cease involvement.

Despite the warning, in July 2001, Mrs Chin developed and promoted ‘Amazing Grace’, a variation of the ‘Abundance’ pyramid scheme.

Over a number of months, she systematically recruited victims by claiming to have gone from heavy debts to trips overseas, in a short period of time.

She heavily promoted through personal contacts and her church fellowship as a ‘gift scheme’ that rewards generosity.

According to flowcharts seized in December 2001, new recruits or ‘students’ were required to give a ‘gift’ of $2,000 to their ‘teacher’. Each teacher received $8,000 in the scheme from four students, and then left the system.

"While these schemes might sound like a quick way to get rich, they are really just a big scam," Mr Walker said. "For every person who receives $8,000, there are four people who lose $2,000 each."

Consumers are encouraged to contact Consumer Protection on 1300 30 40 54 immediately if approached by a pyramid scheme operator.