Victims of web scam may qualify for compensation

12.30pm

New Zealand victims of a US-based internet pyramid scheme may qualify for a payout from a US$20 million ($32.05 million) fund, the Commerce Commission says.

SkyBiz.com involved the sale of website programmes or "WebPaks", with purchasers promised vast profits.

The US Federal Trade Commission pursued SkyBiz in the courts and the defendants agreed to a settlement.

"The settlement provided US$20 million for consumer redress and bars all the defendants from participating in pyramid schemes or misrepresenting the amount of sales, income, profits or rewards," a Commerce Commission statement said.

The Commission prosecuted one person in New Zealand for promoting Skybiz.com. In March last year Gregory Ian Dawson pleaded guilty in Auckland District Court to breaching the Fair Trading Act between 1999 and 2001.

He was fined $4500, but was not in a position to be able to pay compensation.

Over 13,000 WebPaks were sold in New Zealand, Commerce Commission Director of Fair Trading Deborah Battell said.

"Consumers who invested in SkyBiz.com will be notified by email from the court-appointed fund administrator that they may qualify to share in the redress fund."

More information could be found at www.skybiz-redress.com.

- NZPA