Three women have been arrested - but the OFT said there should be 'no assumption' they have conned others.
Women in the south-west of England have been caught up in a suspected "pyramid scheme" con, the Office of Fair Trading (OFT) has said.
The organisation said that it had been working with local Scambusters staff prior to a series of police raids taking place yesterday, during which three Bristol women were arrested. Several entry warrants were also issued for other addresses in the area, ordering people to give up evidence which could potentially help the investigation into the alleged scam.
According to the OFT, the "pyramid scheme" involved women only and worked by each new member paying a joining fee of up to £3,000. The new entrants are also thought to have had to promise to sign up two more people to the system.
However, the organisation also said that there should be "no assumption" that the arrested women had committed an offence.
A pyramid scam attracts investors on the premise that they will reap financial rewards in the future when more members join and the "business" grows. However, the business model is non-sustainable, leaving members ultimately out of pocket and only enriching the scheme's administrators.
The OFT added in a statement: "The Consumer Protection from Unfair Trading Regulations 2008 (CPRs) prohibits the establishment, operation or promotion of any scheme where money is made primarily from recruiting other people rather than from the sale of goods and services.
"Breach of the prohibition is an offence punishable by up to two years imprisonment and/or an unlimited fine. The OFT's investigation is still ongoing and as such no assumption should be made that any person has committed an offence."
Around £18 million is thought to have been generated by the scheme since last May.
