Illegal pyramid game in Chch

Press, 1 September 1989, Page 1

Illegal pyramid game in Chch

By

BARRY CLARKE

Thousands of dollars are changing hands illegally in Christchurch through people playing the pyramid-type money making game, “Aeroplane.” The game is flourishing in the city and other parts of New Zealand with people readily being recruited by the lure of a $6OOO payout for an investment of $750. The success of “Aeroplane” is based on continual turnover of investors who progress from passenger to pilot status, where the money is received. Christchurch people have set up dozens of planes, with several known to have made more than $20,000 each. The police are warning people not to be enticed into the illegal game- after three players were convicted and fined in New Plymouth eight weeks ago. Detectives executed a search warrant on a house where about 50 people were meeting. The promoter, a woman, was charged with organising an illegal game of chance. She was fined $5OO and ordered to fortfeit $ll4l she had made from the game. Two other people were later arrested and charged with permitting premises to be used for an illegal game of chance. They were fined $250 each, and one ordered to forfeit $750.

The police and Commerce Commission have not received

any complaints in Christchurch but spokesmen warn that ultimately some players will lose money. “Aeroplane” is also known to be used ,in Dunedin, Ashburton, Auckland, Gisborne, Whakatane, Masterton and Opotiki in the central North Island. It was introduced to Canterbury by a Wellington promoter who set the game up in Kaiapoi last December. It spread quickly through factories and sports clubs in the town but ran out of participants, resulting in some people getting “burnt,” or losing their money. The Kaiapoi promoters moved into Christchurch and the game has mushroomed. Each “plane” comprises 15

people — the pilot, two co-pilots, four crew members and eight passengers. Each passenger pays $750 to the pilot. When all eight imaginary seats are filled, the pilot takes the $6OOO and leaves the plane. The plane then splits in two and the remaining 14 members move up a rung on both planes. The co-pilots are promoted to pilot positions, crew members to co-pilots and the eight passengers to crew, leaving the vacant seats for newly-recruited passengers. They then pay the new pilots and the process is repeated. A Christchurch player says the only way people can lose their Investments is if they cannot recruit other players.