Commissioner of Police Ellison Greenslade yesterday warned participants of "looms" that "nothing is free".

A loom is a trending suspected Bahamian-based Ponzi scheme in which people are asked to contribute $100 with the promise of getting $800 in return once they find other contributors.

"For you to believe that you can just give someone $100 and you'll get $1,000 is not smart," Greenslade told the media at Police Headquarters.

"At some point, someone is going to get gypped in that deal and it is going to turn into something bad.

"I am told that we have people fussing now about folks owing money saying, 'Look, I gave you my money in good faith, but I never got paid, so could I have my money back?'

"And then there are all kinds of discussions as to how you might get your money. So, if it is illegal, and it is, it's going to be fraught with fraudulent behavior.

"Again, I say nothing that is worthwhile is free. It's just too good to be true."

Greenslade said he is very pleased that the owners of certain business, which suspected that their companies were being used to facilitate cash transactions relating to the scheme, have taken action.

"They were quick to move in and to declare what they deem to be inappropriate behavior; took all of the right actions and I want to applaud that," he said.

"And I think if there is anything I should tell you as the press, that is what you should know. "They didn't hide behind it. They did not encourage it. They stepped up and were forthright in speaking to the press and, in fact, taking action."

While he did not name the businesses he was referring to, The Nassau Guardian revealed earlier this month that Island Luck suspended fewer than 100 accounts, which it said were identified as being used to facilitate a suspected Ponzi scheme. There has been a proliferation of social media users posting "turning $100 into $800" in recent months.

The posts have been linked to a model called The Gifting Circle. Last week, the Securities Commission of The Bahamas said it recently became aware of the The Gifting Circle and plans to investigate whether it is a Ponzi or pyramid scheme.

When asked whether the police force intends to clamp down on participants and facilitators of looms and other similar schemes, Greenslade said, "I don't have any information today that I can give you to say that we have received any significant complaints in writing from people stepping up and asking us to do work on their behalf."

He said when victims of fraud "start from a position of illegality, it's hard for you to report".

Greenslade also said looms warrant a wider conversation about Bahamians who, in their search of endless deals, are oftentimes knowingly or unknowingly purchasing stolen goods.

"I think what we miss in a lot of these discussions, right, is we talk about murders and we talk about other serious crimes, but they're bad boys most times on bad boys.

"But, there are decent hardworking people like you and [me], who turn up to meet our homes ransacked. "Someone has rummaged through your drawers with all your little intimate stuff and your appliances are gone, and it is a fellow who just doesn't care and takes it back to the community and everybody purchases and says 'If you are looking for a deal, I know just who to call'.

"So, this guy in the neighborhood is 'Mr. Deal Man'. "People should turn fellows like that in and not help them by purchasing from them. "It's back to this, 'I want a deal'."

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