Three illegal pyramid schemes are gaining momentum across the Island, The Royal Gazette has learned.

And Police are maintaining an active interest in the schemes, which promise big profits to participants.

The Royal Gazette has learned that all three are becoming highly popular across the Island as dozens of people sign documents pledging donations of $500, $2,000 and $6,000. The payments are gifts for which they expect nothing in return.

But the Department of Public Prosecutions and the Police warned that the schemes are illegal and organisers of past get rich quick schemes have been successfully prosecuted.

Investigations carried out by The Royal Gazette unearthed that in the three most recent popular schemes, participants receive $4,000 on an initial outlay of $500 but only after eight others have joined as well.

Participants in the $2,000 bracket receive $16,000 and those in the $6,000 receive $48,000. In both cases eight people must sign on after any one person, for that person to reap their payoff.

But there are no fractional payments should fewer than eight people join.

Pyramid schemes are illegal because it is certain that the last people to join the scheme will lose their money when they fail to find new recruits.

Insp. David Card of the Police commercial crime unit said that, while the documents can serve to "frustrate'' any legal action that can be taken, they do not negate it.

"While signing these papers can serve to frustrate a legal case they do not make it impossible,'' he said.

"It is not reasonable to expect that people would part with their money and not expect to gain. If this were the case it would be expected that these people might just hand over their money to you or I without any expectation of getting it back.

"We as the Police have a duty to protect people but those people must not act stupidly. It has been said that `a fool and his money are soon parted'.'' Noting that the "sheer mathematics'' of pyramid schemes reveals that some people "are doomed to fail'', Insp. Card said: "If the programme relies on being fuelled by an endless stream of investors, then the only way it cannot fail is for no-one to make a profit.'' The Attorney General's chambers has indicated it will prosecute offenders if Police place a file with them.

Two years ago Juanita Denise Swan and her husband Craig Henry Swan were succesfully prosecuted under the Lotteries Act.

The Swans had operated an organised pyramid scheme called `Ujamma' which went sour after hundreds of local participants found they could not recoup their original investments, let alone make any profits.

PYRAMIDS How to spot a pyramid scheme: You must recruit at least two others in order to realise a return; The payment you receive equals the full amount paid by those after you; You receive nothing at the time of your payment; You are asked or required to sign a document describing your payment as a gift.

No portion of the funds is invested in a recognised financial vehicle.