Bismarck, ND – North Dakota Securities Commissioner Karen Tyler announced today that the Securities Department is actively investigating a Canadian-based, internet fraud scheme currently being promoted in several communities in North Dakota, including Bismarck and Jamestown. Pathway-2-Prosperity or P-2-P Network promises returns of 1.5% to 2.67% per day. An example hyped in its website of $100 invested in the 60 Day Plan would return over $260 in just two months. This has all the earmarks of a classic Ponzi scheme with money from later investors used to pay unrealistically high returns to early investor/promoters, who then bring in their family members, friends and co-workers for a 'referral fee', said Tyler.
The scam claims to be a legal, private investment club and not subject to state and federal securities laws. This is completely false. P-2-P Network is not registered with the North Dakota Securities Department and offering for sale an unregistered, non-exempt security to a North Dakota resident is a direct violation of the North Dakota Securities Act. Local investors encouraging the scheme and referring others to invest for a fee are also violating the Securities Act as unregistered agents of the foreign promoter and could expose themselves to civil or criminal liability. Commissioner Tyler warned that investor money is leaving the country and when the scheme collapses, as they always do, it will be almost impossible to recover any part of it.
The key to avoid getting harmed by an investment scam is to make sure you understand the product being offered and thoroughly check both the salesperson and the product with our Department, said Commissioner Tyler. Remember, if it sounds too good to be true, it usually is. The investigation by the Securities Department is ongoing and individuals with information concerning this activity are encouraged to contact the North Dakota Securities Department at (800) 297-5124 or 328-2929 (Bismarck local).