Leaders of pyramid scheme firm in Iran arrested

TEHRAN, Aug. 1 (MNA) -- The Iranian Intelligence Ministry says it has arrested 10 major members of the Viprol company, which was involved in pyramid schemes.

Intelligence agents arrested the suspects in Tehran, Kerman, Bushehr, and some other provinces after several plaintiffs filed complaints against the company, an Intelligence Ministry official told reporters on Saturday.

The company shut down its website after it had defrauded many people by convincing them to invest in international stock markets, oil and gold markets, advanced industries, and arms sales under the guise of running an electronic commerce business.

The official also said some companies, which claim they have obtained official certification permits to run marketing activities via the Internet, have not been granted permits.

In January, the Intelligence Ministry announced that 15 companies involved in pyramid schemes had been identified and forced to discontinue operations in Iran.

Palinure, Inviting, Golden Village, FSG, and Griffin were some of the companies that were shut down in Iran.

Network marketing differs from pyramid selling (pyramid schemes) in that the latter is a financial fraud and those who deal in this kind of business can be prosecuted based on a relevant law ratified in 2006, which imposes a ban on the activities of pyramid selling companies in Iran, according to the Intelligence Ministry.

According to the law, everyone who cooperates with these companies is disrupting the economic system of Iran and is legally responsible.