ACCC institutes proceedings against alleged pyramid scheme participant

The Australian Competition and Consumer Commission has instituted proceedings in the Federal Court in Perth, Western Australia, against Cosic Holdings Pty Ltd and its director, Mr John Cosic, for alleged breaches of the pyramid selling scheme provisions of the Trade Practices Act 1974.

The conduct relates to Cosic Holdings' participation in the alleged pyramid scheme known as Emerald Passport in breach of section 65AAC of the Act.  It is alleged that Mr Cosic was knowingly concerned in that conduct. 

The ACCC alleges that the Emerald Passport scheme promoted income-earning opportunities associated with the sale of self help products in circumstances where participants were induced to make an annual payment to Emerald Passport Inc with the prospect that they would receive a payment for the introduction of others into the scheme.

The ACCC alleges that Cosic Holdings took part in the Emerald Passport scheme by establishing or operating websites relating to the scheme, printing promotional material, arranging internet advertising and receiving payments from other participants in the scheme.

The ACCC is seeking declarations, injunctions, corrective notices, findings of fact and costs. The ACCC is also seeking an order that Mr Cosic attend a trade practices law compliance seminar.

A directions hearing is listed before Justice Barker on 2 June 2009 at 10:30 am in the Federal Court, Perth.