Woman earns millions of dollars by selling worthless magic cheese to 5,500 naive peopleBy Mason White 11:48 AM June 9, 2015
By: Tanya Malhotra
A woman was arrested on charges of fraud after allegedly selling worthless magic cheese to thousand of naive people in Chile, prosecutors in France said.
74-year-old Gilberte van Erpe operated a scam in which she persuaded thousands of people in Chile to give her millions of dollars to produce magic cheese for the cosmetics industry.
Van Erpe is accused of selling a worthless powder as a manufacturing kit to produce the cheese. Buyers were promised huge profits when their cheese are sold for use in beauty products.
Van Erpe collected a total of $16 million. She went on trial in a Paris court after she couldn’t be extradited to Chile. The scam attracted about 5,500 people, who invested between $450 and $189,000 each.
The victim were sent the powder and told to add milk, which will produce the magic cheese.
The victims were initially paid the dividends they had been promised, and the early success stories prompted them to invest large amounts of money.
Many victims encouraged their friends and family to sign up. Many people cashed in their life savings, homes and properties to concentrate on the magic cheese.
However, the dividend payments suddenly stopped.