Premier Jennifer Smith has ordered an inquiry into the legality of pyramid schemes and an answer is expected as soon as next Tuesday.

Attorney General Dame Lois Browne Evans yesterday revealed that she and her team, on instruction from the Premier, are researching the issue.

"We have decided to go to the books,'' she said adding, "we know that the office of the Director of Public Prosecutions (DPP) has stated that it is illegal but we are doing some more research.

"The Premier has made an inquiry and I will be taking my findings to the Cabinet on Tuesday.'' Dame Lois added that the results would be available to the media after the Cabinet session.

Thousands of locals have reportedly participated in several simple pyramid schemes in recent weeks. Following reports that the schemes are illegal most programmes either stopped and repaid those involved or suspended operations.

Only a few people have complained of losing money while an overwhelming majority want to see the programmes continue.

Hundreds of participants poured into the main hall of the Bermuda Industrial Union in a secret meeting on Monday night. The crowds sought and heard legal advice from lawyer Delroy Duncan, who according to sources, held that the most popular programmes were not pyramid schemes.

A source at the centre of the operations has claimed that the programmes are "mutual assistance financial plans'' and conceded that some structural changes have been instituted to provide a financial safety net for participants.

Three of the most popular schemes saw locals outlay either $500, $2,000 or $6,000, with anticipated returns of $4,000, $16,000, and $48,000 respectively.

Attorney General Dame Lois Browne Evans: "I will be taking my findings to the Cabinet on Tuesday.''