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.