Police warn of a Ponzi-style scam circulating in Ontario [Video]

One person lost over $100,000 in a Ponzi-style investment scam circulating in Ontario.

In January, police started an investigation into the new Ponzi-style investment scam circulating in southwestern Ontario in Essex County, the OPP said in a press release on May 9.

A resident reported they lost approximately $109,000 in the investment scam, OPP said.

The scam involved investing in a business related to the sale of alcohol, police said.

No charges have been laid and the investigation continues.

Essex County OPP warns residents about this type of scam.

In a Ponzi scam, an investor buys into a scheme offering higher-than-normal returns. The scammer then pays early investors with money from new investors. Investors believe their investment is returning high profits, but the scheme will eventually collapse, police said.

OPP offered the following tips to avoid this scam:

• Always approach investments promising high returns and little risk with deep skepticism.
• Never put your money into something you don’t fully understand. Ask lots of questions about any parts that …