Leon Shipard / AndThanks2U / MyFuelClub
Pointed warning about pyramid schemes
Invest some cash and recruit others who pay to join, then you’ll get rich quick from the members under you in the system. What they don’t tell you in the hard-sell is that pyramid selling schemes are illegal and ALL collapse at some point. It might not just be money you lose; if you’ve roped in friends or family, you might suffer a breakdown in relationships too.
On 30 October 2014 the Commissioner for Consumer Protection issued a warning about a Perth 
man who is being investigated for promoting an American-based pyramid scheme called AndThanks2U. 75-year-old Leon Shipard of Ballajura has been posting leaflets through letterboxes regarding the website www.andthanks2u.com and advertising in the ‘business opportunities’ section of the Quokka classifieds newspaper. Quokka has now ceased to publish the advertisements.
The website, registered to a person in Little Rock Arkansas USA, offers participants, who pay $2.50 to join the scheme, a windfall of $145,800 after eight weeks. Each new member must introduce four others per week, for eight weeks, with the joining fee increasing to $1,000 over that period. The scheme’s original sponsor receives the proceeds of the fees collected from future participants.
Mr Shipard is also believed to be promoting another suspected pyramid scheme MyFuelClub (www.myfuelclub.net) which involves various levels of membership depending on fuel consumption. Participants submit their fuel receipts to receive a rebate and are promised a higher rebate as more people are introduced into the scheme – each member must enlist three others.
Anyone who is approached to join these schemes, or has been approached by Mr Shipard specifically, should contact Consumer Protection immediately.
Apart from the danger of pyramid schemes collapsing and leaving many people out of pocket (potentially mates or relatives that you have recruited), there’s also a risk of being prosecuted for your involvement.
Pyramid schemes are a breach of the Australian Consumer Law and there are heavy fines of up to $220,000 for anyone who takes part or encourages others to participate.
Signs of a pyramid scheme include:
- Guaranteed income or winnings that are a lot more than your initial investment
- No goods or services being sold or if they are they aren’t worth what’s being charged for them
- Pushy sales or promotion that may include claims it is not a pyramid scheme and is ‘totally legal’
- Recruitment commission or reward payments are the principal part of the reason to join
Do not be enticed – refuse to take part.
For everyone to make a profit you would need an endless supply of members and that’s not going to happen. Ultimately it’s first in best dressed with these schemes – the promoters at the top are the only winners and there’s no such thing as lucky last!
Pyramid scheme promoters can be reported to Consumer Protection on 1300 30 40 54 or consumer@commerce.wa.gov.au.
If you are in doubt about whether a scheme is a pyramid scheme, don’t be pressured into signing up; instead seek independent advice from a lawyer or accountant before investing any money. And remember you can contact Consumer Protection WA, ASIC or the ACCC for assistance.