By Fay Simmons

Tribune Business Reporter

jsimmons@tribunemedia.net

The Consumer Protection Commission’s chairman yesterday said that - while the agency has received inquiries - there have been no formal complaints about a venture with “hallmarks of a pyramid scheme”.

Senator Randy Rolle told Tribune Business that the consumer watchdog has received calls over recent weeks questioning the validity of Creators Alliance but these have not translated into formal complaints.

He added that, if the Comission received a complaint involving financial fraud, the Financial Intelligence Unit (FIU) and the financial regulators would have to be involved.

“We received some inquiries from Grand Bahama, but no formal complaints. I’m not sure what complaints were put in with other agencies or the Royal Bahamas Police Force, but we have not received any formal complaints about that,” said Mr Rolle.

“When we receive a complaint of this nature we would, of course, liaise with the Financial Intelligence Unit (FIU) and the regulator. So once one agency gets a complaint, we will reach out to collaborate and based on the findings determine how best to handle it.”

Mr Rolle added that while the Commission is not investigating the scheme, the Consumer Protection Act has some “teeth” that can be used to secure compensation for victims. “We haven’t received any complaints so we are not investigating, but there are some teeth in our legislation that whoever is investigating this can use to get some redress for consumers,” said Mr Rolle.

Concerns over Creators Alliance have erupted in recent days with persons claiming that they had been locked or frozen out of the platform, unable to withdraw and funds, while payouts have ceased. The scheme appears to have tentacles throughout the Caribbean region, with complaints being voiced from locations such as St Lucia, St Vincent and the Grenadines and Puerto Rico.

Tribune Business attempted to contact what appeared to be a physical office for Creators Alliance in Freeport, but the numbers either rang out or went straight to voice mail.

The Securities Commission, in a statement issued on Friday, warned that Creators Alliance has not been registered or licensed with itself and thus appears to be operating in this nation in violation of Bahamian law. “It has come to the attention of the Commission that Creators Alliance (CA) may be conducting activities, in or from within The Bahamas, that are either registrable/licensable or illegal under one or more of the Acts,” it said.

“The Commission hereby advises the public that Creators Alliance and its agents/representatives are not registered with or licensed by the Commission. Furthermore, its activity may be such that it constitutes a violation of one or more of the Acts.”

The Securities Commission asserted that investigations have revealed Creators Alliance appears to be operating as a multi-level pyramid scheme, with participants charged to bring new persons into the scheme, and monies injected by new investors being used to pay off older ones.

“Creators Alliance appears to be an organisation based in California, US. The Commission’s information suggests that the company’s business is that of marketing via the use of purported promotional videos of varying content,” the Bahamian regulator warned.

“However, inquiries have determined that the entity is operating a multi-level structured programme whereby persons are recruited into the programme at one of several levels. The recruiters in turn receive a stream of income determined by the size of the recruitment. In order to enter the programme, each person is required to invest a sum of money (the purchase price) for a period of six or seven months.

“During the ‘investment period’ individuals are promised a daily income, which is generated by simply watching videos. Persons recruited are promised that they will receive their initial investment (the purchase price) at the end of the investment period,” the Securities Commission continued.

“This activity by Creators Alliance has the hallmarks of a pyramid scheme, which is a financial scheme defined by the Financial and Corporate Service Providers Act 2020. This renders Creators Alliance an unlawful operation in this jurisdiction.”

Creators Alliance, though, last week sought to reassure participants that the scheme was just working through technical difficulties. Shiro Hing, a manager of Creators Alliance, said: “I want to take a moment to clear up any concerns that have arisen over the past few hours. Creators Alliance has not crashed. Instead, we have made an elaborate shift to a new system that will greatly enhance security, efficiency and overall user experience.

“Earlier today, I had a conversation with our founder, Mark Eddo, regarding these changes. He reassured me that this transition was a necessary step in strengthening the platform and ensuring long-term sustainability for all members. While we understand that this shift may have caused temporary disruptions, please know that this was all part of a carefully planned upgrade.

“We sincerely apologise for any inconvenience this may have caused. Rest assured that all salaries will be processed and received within the next few hours as final adjustments to the system are completed. We appreciate your patience, trust and commitment to Creators Alliance. If you have any questions or need assistance, our support team is available to help.”