Steinbach residents charged in pyramid scheme

Three women and a man from Steinbach have been arrested and charged in relation to an alleged pyramid scheme after an investigation by the RCMP.

On January 13, the Winnipeg Commercial Crime Section charged thirteen individuals and a corporation in connection with an alleged Pyramid Scheme. Those charged include the Business In Motion International Corporation, from Mississauga,Ontario and director Colin Fox, also from Ontario. Four other individuals from Ontario, one from British Columbia and seven individuals from Manitoba were also charged.

Among those charged are David Kauenhowen, a realtor with Sutton Impact Team in Steinbach and his wife Cornelia Kauenhowen, along with Annie Petkau and Katharine Reimer. All four are from Steinbach.

Police began their investigation following complaints about “Business in Motion” in and around Steinbach. The charges related to activities that allegedly took place between Spring 2008 and Fall 2009.

Corporal Chris Lambert from the RCMP Commercial Crime Section says that the scheme was based on recruiting an every growing number of investors.

“The initial promoters recruit investors who are expected to bring in more investors,” explained Lambert. “Recruiting newcomers is more important than selling products.”

No new money is created in the scheme and investors that get in early take their profits. When no new investors are found those at the bottom of the pyramid lose their money.

Lambert doesn’t anticipate any new charges are expected in the case.


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