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March 7, 2006 10:37 PM   Subscribe

I was wondering if anybody has any knowledge of Canadian Diamond Traders Inc.

They advertise a scheme to join a group of traders for $100 and get an awesome return on your investment, plus a diamond. Is this a pyramid scheme? An Amway system? Some sort of scheme? Legal?
CDT Inc.
google query
CDT program

I ask because my parents are interested and I don't want them to get ripped off, even if it is by a small amount.
posted by ashbury to Work & Money (4 answers total)
 
CDT is advertised on various MLM sites.

Anytime I see "MLM" I run fast and hard in the opposite direction. I modified your google query a bit:

google query

And found this (scroll down a bit):

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"Now another gem scam from Canada set up exactly as TTI, Canadian Diamond Traders is ripping of millions. In Canada cops even chief of police wives, corrupt lawyers, politicians, accountants, school board officials, church ministers, government officials, bank employees and members of the news media etc., were involved in the fraud of the decade Women Empowering Women from which these other pyramid fraud have been “cloned”. Authorities in Canada are corrupt and are promoting these pyramid frauds and refusing to inform the public and the press refuses to uncover these frauds until the “big shots” at the top retire with there pockets full years later. The world should be examining this wide-spread corruption in Canada."
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There's more on the site, check it out.
posted by user92371 at 10:56 PM on March 7, 2006


Argh. Try this:

google query
posted by user92371 at 10:57 PM on March 7, 2006


It definitely sounds like a scam to me, or at best an MLM scheme which is equivalent to scam in my mind. However, that tinfoil hat diatribe is absolutely hilarious.
posted by antifuse at 2:49 AM on March 8, 2006


Absolutely a scam. People need to understand something very simple: Risk free awesome returns don’t exist. If they did, they would be instantly arbitraged away. To believe in a risk-free awesome return is to let one’s desire for money overcome one’s common sense.

This scam won’t end with $100. The $100 is a mere entry fee, to suck in those gullible and foolish enough to plunk down a small sum to see what happens. After that, there will be immense and effective psychological pressure employed to get them to toss in more. “Another $500 will guarantee you an even higher return.” “Temporary liquidity problems preclude an immediate payout but another $2000 will guarante an extra 5% return next month.” It’s an old old trick and can end with people losing substantial amounts of money.

Risk free awesome returns don’t exist.
posted by mono blanco at 4:07 AM on March 8, 2006


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