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Gaming executives guilty of operating illegal lottery, pyramid scheme

Insider BuzzInsider Buzz: Gaming executives guilty of operating illegal lottery, pyramid scheme

Six of the lead promoters of World Games Inc. (WGI) plead guilty to operating and promoting an Illegal Pyramid Scheme December 6, 2004 in Calgary, Alberta.

The guilty plea was a result of a five month Joint Forces investigation including the Alberta Gaming and Liquor Commission (Gaming Investigation Team), Calgary Police Service, RCMP, and the Lethbridge Police Service.

World Games Inc. CEO, Greg Kennedy was found guilty of pyramid selling offenses by the Australian Federal Court earlier this year in addition to a WGI member in Sweden for an Illegal Lottery offense.  Other criminal investigations continue in various global jurisdictions.

The company of World Games Inc. have been operating an illegal pyramid scheme and illegal lottery in Canada since April of 2001.  Investigators became aware of the scheme in early March of 2003.  WGI boasted a world wide membership of approximately 300,000 people with a steady growth, and an unconfirmed membership in Alberta and in Canada.

Investigators urge the public to be aware of such schemes that include recruitment, paying a sum of money with the entitlement of a larger sum of money based on recruiting new members, and the purchase of unlicensed lottery tickets.

Gail Boone of Red Deer, Alberta, Ronald Patey of Lethbridge Alberta, Donald Gellatly of Taber, Alberta, Cliff Rau of Lethbridge, Alberta, Janet Friskie of Regina Sask., and Richard Brown of Calgary, Alberta plead guilty to the following charge:



Between the 5th day of March, 2003 and the 8th day of September, 2003, both dates inclusive, at or near Calgary, Alberta, did unlawfully establish, operate, advertise or promote a scheme of pyramid selling by which a participant in the plan gives consideration for the right to receive compensation by reason of the recruitment into the plan of another participant in the plan who gives compensation for the same right, contrary to Section 55.1(2) of the Competition Act.


On the basis of the crowns application, Provincial Court Judge Hamilton prohibited both Boone and Friskie from participating in any Multi-level marketing program unless it was reviewed and authorized by Industry Canada.  The prohibitions were in addition to fines that ranged between $75,000.00 and $4,000.00.

A Canada Wide warrant for the arrest of former WGI Vice President Quentin George, remains in effect.

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6 comments. Last comment 12 years ago by Maverick.
Page 1 of 1
Maverick's avatar - yinyang
USA
United States
Member #8242
October 29, 2004
1133 Posts
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Posted: December 9, 2004, 3:21 am - IP Logged

Busted

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    Norway
    Member #5537
    July 10, 2004
    12 Posts
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    Posted: December 9, 2004, 6:27 am - IP Logged

    WGI Members claim moral victory in Canadian case


    WGI Members who were originally charged with offences under the Criminal Code of Canada were today celebrating a moral victory when all criminal charges were dropped by the Prosecution. The WGI Members charged were prominent members of their local communities. The Members had consistently protested their innocence and were prepared to mount a vigorous defence to prove that innocence. Their defence proposed to include evidence from witnesses from every walk of Canadian life from police officers to priests. Nonetheless at the 11th hour before trial the crown offered to withdraw all charges carrying a criminal record if the Members would plead guilty to a lesser (non-criminal) offence that carried a simple fine.


    The Members were planning to stage a defence not only in protection of their honour but also their very livelihood. These Members had also been living in the shadow of these allegations for almost two years. Therefore the Members made a decision to accept the offer of the Crown and in so doing get on with the rest of their lives.  Despite almost two years of an investigation that has been referred to as over zealous in some quarters, Prosecutors were obliged to accept that the original charges against WGI Members could not be proven.

    The offer accepted by WGI Members is interesting inasmuch that Members are free to retain all proceeds from their activity within WGI. Further WGI has not been declared criminal in Canada. WGI applauds the Members for their grace and dignity through this entire unfortunate episode and wishes them every success as they return to their normal lives free from the spectre of criminal allegations.

      Maverick's avatar - yinyang
      USA
      United States
      Member #8242
      October 29, 2004
      1133 Posts
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      Posted: December 9, 2004, 6:37 pm - IP Logged

      I wonder why the members were charged to begin with. It's the promotors who deserved what they got on December 6, 2004.


        United States
        Member #379
        June 5, 2002
        11296 Posts
        Offline
        Posted: December 9, 2004, 6:48 pm - IP Logged

        If only I had issued a DICK CLARK Alert (tm).

          Todd's avatar - Cylon 2.gif
          Chief Bottle Washer
          New Jersey
          United States
          Member #1
          May 31, 2000
          23351 Posts
          Online
          Posted: December 9, 2004, 7:44 pm - IP Logged

          For those reading slampen's remarks above, please note that he is a lackey for this WGI scam outfit, and is frankly not to be trusted.  He has a stake of some type in WGI - and may in fact be one of the principles of the sleazy company.

          I'm sure he will attempt to post some kind of rebuttal to this, but the funny thing is that he told me that if WGI was ever found formally guilty of anything that he would change his mind about them.  The fact that many countries have now found them guilty, and he has not changed his mind is quite instructive.  It just proves my point about him.

           

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            Maverick's avatar - yinyang
            USA
            United States
            Member #8242
            October 29, 2004
            1133 Posts
            Offline
            Posted: December 9, 2004, 10:17 pm - IP Logged

            Wow, Thanx for the info Todd. His post did seem kinda fishy cos I read the promotors plead guilty on December 6, 2004... then slampen posted something Published 08/12/2004.