A Frenchwoman went on trial accused of conning thousands of Chileans into buying a kit to make “magic cheese” they could sell back to French cosmetics companies for use in luxury beauty products.
Gilberte Van Erpe, 74, allegedly told her victims the prized ingredient was even used in creams favoured by celebrities such as Michael Jackson, but the goop was worthless and the scam became one of the biggest pyramid schemes ever seen in South America.
Many families mortgaged their houses or became heavily indebted to invest in the pyramid scheme, which raked in 14.5 million euros (HK$125 million, or US$16 million) for the alleged scammers.
The “case of the magic cheese”, as it is known in France, began in 2005 when the businesswoman dubbed “Madame Gil” held conferences around Chile urging people to become home producers of the fermented product.
Her company, Fermex Chile, had some 20 branches around Chile.
For 369 euros, investors could buy a kit containing filters and a special powder which when mixed with milk and fermented, produced a small cheese pat they were told was highly sought after by the cosmetics industry.
Fermex promised that companies like French cosmetics giant L’Oreal would snap up the cheese for use in whitening creams and other products. That is, after they were sold to a company in Congo-Brazzaville which would sell them on to France.