Pyramid scams - Beware of solicitations for multi-level marketing investment schemes

MONTRÉAL, Sept. 26, 2025 /CNW/ - The Autorité des marchés financiers (AMF) is warning Quebeckers about solicitations that are being carried out using multi-level marketing (MLM) principles. In some cases, they may be part of a pyramid scam.

The AMF has noticed that several organizations and individuals are actively attempting to attract Québec investors by offering them the opportunity to earn money based on the number of people they recruit. To this end, investors are being encouraged to solicit people in their circle (e.g., friends, family members, colleagues, members of their ethnic or religious community).

The promoters of such organizations hold in-person or on-line promotional events (e.g., Zoom presentations) during which they employ various persuasion techniques, including the promise of financial freedom or personal growth and (often fake) success stories.

Most of these organizations and their promoters are not registered to act as advisers or dealers under the laws administered by the AMF. Investors could therefore suffer potentially significant financial losses.

Call to consumers

The AMF reminds the public that offering investments—whether over the Internet, by telephone or in person—is a regulated activity. Any individual or firm promoting an investment product must be registered with the AMF or benefit from a registration exemption. To make sure you're not being solicited illegally, check whether the individual or firm who contacted you is in the Register of firms and individuals authorized to practise or call the AMF Information Centre.

Additional information about pyramid schemes is available on the AMF website, which also provides a list of related investor warnings.

About the Autorité des marchés financiers

In its role as regulator, the Autorité des marchés financiers acts to maintain a financial sector that is dynamic, operates with integrity and warrants public confidence. It regulates, in whole or in part, activities in the following sectors: insurance, securities and derivatives, distribution of financial products and services, deposit institutions, mortgage brokerage and credit assessment.

FURTHER INFORMATION

SOURCE Autorité des Marchés financiers