| For those
of you who wish to pursue further study and review, the list
that follows profiles a laundry list of real Ponzi/Pyramid
scams and cases that you can research.
2Xtreme
The FTC filed suit against 2Xtreme to halt the operation of
a vast pyramid scheme promoted in part on the Internet, and
to freeze the defendants' assets, pending trial, so they will
be available for consumer redress. The agency alleged that
the pyramid scam, disguising itself as a legitimate multi-level
marketing plan, used deceptive earnings claims to lure consumers
to enroll in the scheme. The company claims to have recruited
more than 60,000 consumers.
21st
Century Nutriceuticals
Louisiana Dept. of Justice Served a Notice of Complaint and
Issued a Civil Investigative Demand on 21st Century Nutriceuticals
pursuant to a Pyramid Scheme investigation.
A
$5 Gimmick
Based in the Netherlands. Consumers complete an application
form and return it with the equivalent of US$5 (payable monthly).
Those who have joined can induce others to join with the promise
that more money can be earned depending on the number of people
in the scheme.
Adair
Benevolent Society
Indiana Attorney General's Office served a Civil Investigative
Demand on Adair Benevolent Society pursuant to a Pyramid Scheme
investigation.
Advanced
Marketing Seminars
Maryland Securities Division petitioned for, and obtained,
a Preliminary Injunction against Advanced Marketing Seminars
pursuant to a Pyramid Scheme investigation.
Amigos
Associates 500 Social Club, Inc.
New Jersey Dept. of Law and Public Safety petitioned for,
and obtained, a Preliminary Injunction against Amigos Associates
500 Social Club, Inc. pursuant to a Pyramid Scheme investigation.
Anova-Tau,
Inc.
New Jersey Dept. of Law and Public Safety petitioned for,
and obtained, a Preliminary Injunction against Anova-Tau,
Inc. pursuant to a Pyramid Scheme investigation.
BG
Management, Inc.
Maryland Securities Division petitioned for, and obtained,
a Preliminary Injunction against BG Management, Inc. pursuant
to a Pyramid Scheme investigation.
Business
Software
Consumers receive unsolicited mail inviting them to sell computer
disk reports that cover ‘job specifications'. Cost of
each disk is $20. Participants are required to send $20 to
each of usually four persons named on a list they have received
to obtain a copy of each report. Participants then send out
letters similar to the unsolicited ones they received but
this time they put their own name on the top of the list and
drop the bottom name off. The lists offer broad-brush management
information readily available from free sources.
Cash
Club, Victoria
Same game as the Plane Game, Concorde and Golden Galaxy. Gold
($5,000 earns $40,000), Silver ($2,000 earns $15,000) and
Bronze ($500 earns $4,000) levels of the club. Cost for each
membership is shown with the amount to be earned from each
level. Start as club member (8), progress to committee member
(4), then vice-president (2) to president (1). President receives
money form the eight club members and leaves the game. It
splits in half with one vice-president becoming the new president.
Everyone moves up one and then eight new club members are
required.
Caruba
Partners (Caruba International)
Your basic pyramid scheme. Cute website, ineffectual disclaimer
that says, "Caruba International, is not a bank, financial
institution, or brokerage firm. Caruba does not sell any securities
or offer any investments . . . " and then they go right
on with their, "Invest in my pyramid scheme"
pitch.
The Principal
is reported to be a black male:
Ivan E. Shew-A-Tjon
19720 NW 3rd Court
Pembroke Pines, FL 33029
DOB: Jun 16 1952
Cash
Daily MLM
A scheme similar to Business Software above. Unsolicited printed
material received by consumers who are invited to photocopy
the material and send $5 to every person on a list included
with printed material. Consumers add their names at the top
of the list, remove the name at the bottom then post as many
unsolicited lists as they wish.
CD
Express
Cost to join is US$55. Consumers receive a welcome kit and
350 points to purchase CDs and CD ROMs. Participants induce
two others to the scheme with more commission being earned
for more referrals.
Christopher
Erickson Scheme
Operates from outside Australia and consumers who receive
unsolicited printed material are invited to send $5 for ‘money
making' reports to each of four people with overseas addresses.
When the very broad-brush and limited value reports are received,
participants are asked to send copies of the original letter
with their name in the top position on the letter. The bottom
name from the letter is removed and participants are told
to ‘wait for the orders and the money for the reports
to come in'.
Club
Equitynet
Consumers who receive unsolicited printed material are told
they could qualify for a home loan of up to $120,000 at a
fixed interest rate of 3% within 20 weeks of joining. Cost
to join is an annual 'Agency Contribution' of $160. Participants
are required to join up at least two new people (Agents) into
the scheme. Participants can earn 30 points for each new agent
they join. Each point equals $1 towards the 3% 'Home Loan
Value.' A total of 4,094 new agent/participants are required
to be recruited for a person to be eligible for the $120,000
3% home loan. Participants can then enter Phase 2 of the scheme
and by recruiting another 1,022 people can be eligible for
a $250,000 loan. A line of credit of up to $20,000 is available
to members who meet certain criteria.
Consumer
Enrichment Centre, Milton, Qld
Receive a letter advising of your eligibility to win $15,000.
Only by reading carefully will you find that to win you have
to win a 3 part skill contest with possible tie-breakers.
Total cost of contest is $11. You can increase the amount
you win by taking up additional offers. Cost of these additional
offers is up to $140. Contest continues until March 2001.
David
Stein Mailing scheme
Australian scheme where participants are asked to send $10
to each of four people on a list. Those four persons are asked
to include the new participant's name to their own mailing
lists by removing names from the bottom of those lists. Participants
are asked to send out 200 copies of the Mailing Scheme letter
and ‘wait for the money to come in'.
Destiny
Telecomm International Inc
Persons are invited to join this pyramid selling scheme by
paying $US100, $US 300 or $US700. The Australian Competition
and Consumer Commission has taken Court action to prevent
the company operating its illegal scheme in Australia.
Edward
L Green
'Make $200,000 in 90 days or less.' This long running scheme
involves consumers ordering four reports at $20.00 each from
four different people listed on unsolicited printed material.
The new participant's name goes at the top of the list by
dropping off the name of person in fourth position. A participant
is asked to post 200 letters with their name in first position
and wait for the orders and money to come in.
Equinox,
International Corp
The FTC identified Equinox, International Corp., as a massive
pyramid scheme being promoted on the Internet. Together with
state law enforcement partners from Hawaii, Maryland, Nevada,
North Carolina, Pennsylvania, Tennessee and Virginia, the
FTC filed suit in U. S. District Court to halt the illegal
operation. District Judge Johnnie B. Rawlinson issued a Preliminary
Injunction and appointed a receiver, pending trial.
Future-Gen
Pty Ltd
Persons are required to buy $100 worth of products per month
and join up three people who must in turn join three more
in order to receive commissions and bonuses. All participants
must continue to join people up and all those involved must
buy $100 worth of product per month.
Flying
Saucer, Flying Starship & Cosmic Adventure Games
Flying Saucer, Flying Starship and the Cosmic Adventure games
are classic illegal pyramid sales games identical in format
to Concorde and the Plane Game. Different names are used -
earth stations, space station and Mars. Cost to enter is $300
and when players reach the second level (space station) they
must introduce two new players. When reaching the top position
(flying saucer) players receive $400 in cash and a $2,000
seat in the Cosmic Adventure game from which players are promised
$16,000. All pyramid sales games collapse with the majority
of participants losing all their money.
Fortune
Quest International
Michigan Attorney General's Office served a Notice of Intended
Action on Fortune Quest International pursuant to a Pyramid
Scheme investigation.
Given
in Freedom Trust
Michigan Attorney General's Office served a Notice of Intended
Action on Given in Freedom Trust pursuant to a Pyramid Scheme
investigation.
Global
Interactive Investment Club
This scheme promises consumers an ‘off-shore' credit
card by sending US$100 to a Canadian company. Consumers are
told the card will have a credit limit of either $4,000 or
$15,000. Promoters of the scheme state there are no credit
checks and bankrupts can apply. There is a charge of US$25
per month for the service. Once issued with a card, consumers
are told they can earn commission by joining more members
into the scheme.
Global
Network Team-Denmark: Liberty Gold
Investment £387. A person then recruits two members
who in turn recruit two new members. When a second level is
complete, consumer are told they will receive £100 with
the more members signed up the more money that can be earned.
Global
Prosperity Marketing Group
Australian scheme where consumers are asked to buy, from a
‘Director', a $1,600 ‘Gateway 1' package comprising
eight audio cassettes. To qualify as a Director, participants
must sell Gateway 1 packages to two other people with the
profit from those sales going to the person who made the initial
approach to the consumer. Participants can start to earn their
own money from the fourth person introduced and the sale of
Gateway 1 & Gateway II audio cassettes.
Golden
Galaxy
Played in the same way as the Plane game and Concorde. Game
is played on the Internet. Games can be played with entry
costs of US$10, $50, $500, $1,000, $5,000, $10,000, $25,000,
$50,000, $100,000, $250,000, $500,000, $1 million and $5 million.
Money is paid to the 'Pilot' and once 8 passengers have paid
fares, the Pilot leaves and the game splits in two. All people
move up to the next level. Co-Pilots become Pilots, the crew
become Co-Pilots and the former passengers become Crew members.
Eight (8) new seats then become available. A 5% fee is payable
to Golden Galaxy for costs to operate scheme.
Global
Vision
Cost to join is ‘free' but participants must have three
sponsored people who in turn have three sponsored people under
them down to the seventh level. To earn the maximum money
the scheme promises, each participant requires 3279 people
under them. There is a requirement to purchase goods for which
a commission is paid. Purchases by those on lower levels also
attract a commission.
Goldquest
International Ltd
Hong Kong based scheme that markets gold coins and products.
The coins are uncirculated coins minted in Germany and range
in price from US$700-900. The scheme operates by the recruitment
of customers by existing Independent Representatives (IR).
An IR is provided with an ID that gives access to a 'Tracking
Centre' (TC) in Goldquest's computer system through which
the IR's sales are tracked. A TC has a left and right customer
group. Every GQI customer owns a TC which is then placed on
the left or right customer side of the IR's TC. A 'direct'
transaction (your sale) is counted as 1 transaction. An 'indirect
transaction (someone in your TC sells) is also counted as
1 transaction. GQI pays $400 each time 5 product sales on
an IR's left customer group are matched by 5 product sales
on the right, whatever the combination of direct and indirect
sales.
Golden
Sphere International
A joining fee of $150 applies with $50 to be sent to Vanuatu,
$50 to member in position 1, $50 to sponsor. Participants
start in position seven and 2187 members must join before
participants reach position 1 to receive money.
Helping
Women To Help Women
Consumers receive an unsolicited letter with a list containing
the names of four women. $5 has to be sent to the woman on
the top of the list. Letters being sent to prospective participants
by those joining the scheme omit the top of the list name
and add the new participant's name at the bottom. Participants
are asked to send ten letters to their female friends.
Income
2000
It costs $75 to purchase membership of the Income 2,000 ‘Aristocrat'
program. Consumers are told they will receive a Deed by paying
$75 to the person whose name is on the Deed. Consumers then
have to return the Deed with bank receipt and other details
and $50 to Income 2000. They will then receive three more
Deeds, two with the first person's name on them and one with
the consumer's name. There are four other Income 2000 programs
with differing membership costs.
International
Direct-Mail Network
International ‘mail order' scheme. Send US$10 to each
of five names on a list to receive copies of five reports.
Add your name to the top of the list and remove the name in
position five and move all others down one position. Send
letters with your name on the list and wait for the requests
and money for reports ‘to roll in'.
International
Direct-Mail Order Network
Consumers are asked to send AUD$20 to five persons with overseas
addresses to receive a specific report from each. They are
told they should place their name in position 1, move all
the other names down one position and remove the 5th name
from the list. After receiving the five reports, they are
told to send out copies of the original letter with their
name in position 1.
International
Heritage
SEC v. International Heritage involved one of the biggest
pyramid schemes in recent history. Prospective investors were
told they could make money by selling Montblanc pens, Waterford
crystal, Coach leather products, and Ping golf clubs. However,
when people signed up to become distributors, they were told
they could make much more money if they signed up other people
to become distributors. Additionally, people who actually
tried to sell the products never received them from the promoters.
By the time the SEC moved in to stop the scheme from continuing,
the promoters had raised $150 million from 155,000 investors.
International
Mailing
Consumers are asked to send a AUD$10 International Postal
Order to the person who has sent an unsolicited letter to
them inviting them to be included on an Agents List. Consumers
them must send an AUD$2 International Postal Order to each
of five other listed ‘international agents' along with
a request to be added to their lists. Remove top name when
list is received, put your name on the bottom and send out
200 copies. Your name will gradually move up the list.
International
Prize Fund Administration, New York USA
Letter advises you are a 'guaranteed cash award' winner of
up to $48,500. You have to correctly answer the question on
the bottom of the entry form to be eligible to win any amount.
Every cash winner will win at least $2.50. Competition closes
31/12/2000 and winning number is pre-selected from 5 million
numbers before the promotion is sent out. You are also given
an opportunity to purchase various pieces of jewelry for prices
of $39.95 each. Jewelry is normally not worth the price paid.
Jane
Nelson
Consumers receive a letter including a list of participants
in the scheme. Send $10.00 'loan' to the person in the No.1
position on the list; remove their name and add your own name
in position three. Send out 20 copies.
Jilly
International Services, Ltd.
Michigan Attorney General's Office served a Notice of Intended
Action on Jilly International Services, Ltd. pursuant to a
Pyramid Scheme investigation.
Joker
88
Based in Germany where originator of the scheme claims it
is legal. Cost to join is $150.00. Pay $50 to the person who
sells the certificate, $50 to the person in position one on
the list sent with the letter and a $50 deposit in a bank
account. Details of the payment and account number have to
be sent to the German promoter in order to obtain three certificates.
Consumer sells the certificates and waits 12 months for their
name to move to the No 1 position on all lists being sent
out. The promised return after twelve months is $109,000 but
2,187 people must be recruited for one person to reach the
number one position and receive this amount.
Kinetic
Resources International d/b/a KRI
Michigan Attorney General's Office served a Cease and Desist
Order on Kinetic Resources International d/b/a KRI pursuant
to a Pyramid Scheme investigation.
Krona
Klub
Started in Norway and Denmark and imported to Australia. Set
up on a similar basis to the Plane Game, Concorde, Golden
Galaxy etc. Pay initial cost of $125 to enter and then recruit
two others who recruit two, who also recruit two. There are
fifteen players in each game. Collect $1,000 from the first
game you enter, $500 cash and $500 is paid for automatic entry
to the next game. Collect $3,800 from that game, $1,800 cash
and $2,000 entry to the next game. The game progresses through
four levels.
Lotto
Master
The cost is $20.00 with four parts @ $5.00 each. Participants
must order four parts before they can use the system. Each
part must be copied along with the original letter and removing
top name on the accompanying list and placing new participant's
name in the fourth position. Send out between 200-1,000 flyers
and collect money when your name moves to number one position.
Make
a Million
Cost $30. Send $10 to each of three names on a list. Remove
person in number three position and insert your name in position
one and move other two down the list. Send out 200 copies
of letter with your name on list and wait for money to roll
in.
Mark
Drucker – Day Trader Extraordinaire
In October 1999, the Securities and Exchange Commission (SEC)
charged Mark Drucker with running a $6.2 million Ponzi scheme.
Drucker told investors that he was a successful day trader
and that because of expertise in this field, he could invest
their money and secure a 50% return in two months or less.
Drucker used investor funds to pay earlier investors their
promised 50% returns. However, Drucker neglected to tell investors
that his day-trading strategy consistently lost money -- in
fact, during 1999 alone, Drucker lost $630,000. Drucker also
conveniently forgot to tell investors that he was using their
money to pay off earlier investors and to finance elaborate
parties at his home.
Manna
Matrix
Kentucky Attorney General's Office served Manna Matrix a Cease
and Desist Letter pursuant to a Pyramid Scheme investigation.
Mega$net
Cost $180. Purchase a computer software disk for $30 from
a Mega$net agent. Use a computer to enter your details and
print five purchase orders from the program. Send $30 each
to five providers who will each send you an unlocking code
for the program. Make six or more copies of the program and
sell them for $30 each.
Money
Masters
Michigan Attorney General's Office served a Notice of Intended
Action on Money Masters pursuant to a Pyramid Scheme investigation.
Network
Team-Denmark: Prosper International League Ltd
Pay $200 membership fee to Prosper International League Ltd.
Sponsor three new members or purchase three additional P I
L L memberships (total cost $800). The extra $600 allows a
trust to be activated in your name. $200 sets up your Trust
and each new member you enroll directly pays $200 into your
Trust fund. You are issued with an International Credit Card
with a limit of $1,000 when your trust account balance reaches
$1600.
New
Millennium Direct-Mail
Cost $100. Send away for five separate reports @ $20 each
from each of the five people named on an accompanying list.
Remove the name on the top of the list and place your own
name and address in the top position. When you have the reports,
copy them and the original letter. Send out as many copies
of the letter as you wish with your name in the number one
position and then wait for people to send you money for the
reports.
Oneonta
Marketing Group
Michigan Attorney General's Office served a Notice of Intended
Action on Oneonta Marketing Group pursuant to a Pyramid Scheme
investigation.
Online
Ninety Nine
$160 to join. $50 goes to person who introduces you to scheme,
$50 to person in No 1 position on the list and $60 to Online
99 which is based in Queensland. Receive three certificates
with your name in position seven, sell them to recoup $150.
Wait until your name reaches the No 1 position when the promised
money will start coming in. Also receive a 'Pantry 'N' Cellar'
discount card. Renew membership annually for $110.
Opportunity
Listing Service
$15 joining fee. Fill out the joining form and send it with
$15 to an overseas address. Receive a copy of the same joining
form which now has your name inserted as a Distributor. Copy
the form and send out as many copies as you like. You receive
$5 for each listing you get.
Opportunity
Seekers Mailing List
Cost US$45. Receive a single page flier with three names to
whom you give a 'loan.' Send $US15 to first name on list;
$US10 to second name; $US5 to third name. Send US$10 to the
monitor/facilitator shown on the list and in return, receive
a master copy with your name in position three and a mailing
list. Make at least 30 copies of the master copy and send
to as many people as you wish.
Oxford
Savings Club
Maryland Securities Division petitioned for, and obtained,
a Final Cease and Desist Order against Oxford Savings Club
pursuant to a Pyramid Scheme investigation.
OzPower
Scheme 'bonus plan' - The Syndicate Club Pty Ltd
There is an initial joining fee, upfront payments and then
weekly payments to cover the cost of playing Oz Lotto and
Powerball in a syndicate. The organizers of the syndicate
cover the sixth number and Powerball number in the respective
lottery draws, with the member only having to be concerned
with the remaining numbers in Oz Lotto and Powerball draw.
The Syndicate Club claims to reduce the odds of winning in
Oz Lotto and Powerball by using their system. However, people
are also invited to join a 'bonus plan', where members are
encouraged to get others to join the syndicate. By doing so,
it is represented that the member's cost of playing Oz Lotto
and Powerball can be partially or fully covered, or indeed
a member can earn an income, depending how many persons the
member gets to join. The 'bonus plan' aspect of the OzPower
Scheme contravenes the prohibition on pyramid selling under
the Fair Trading Act 1987.
Pacific
International Credit Services (PICS)
Supply of an off-shore credit card. Send US$125 to company
in Texas and obtain a credit card from an off-shore bank with
a credit limit of between $400 and $20,000. There are no credit
checks and even bankrupts can apply. PICS will then charge
US$25 per month in fees for the service. Following receipt
of the card, participants can earn commission by joining members
into the scheme.
Paradise
Wins-Instant Lottery Collectors Club
Send $10 and a $1 instant money ticket each month to whoever
sponsors you into the scheme. Then recruit others into the
scheme beneath you. All the people you sponsor on the first
level pay you $10 and a $1 instant money ticket per month.
All people joining underneath them pay the same to their sponsor
but only pay a $1 instant money ticket to you. Recruit down
to six levels.
Partner
Cost is US$60.00. Pay for a ‘mail order riches pack'
to a Melbourne based company that retains $20.00 and sends
$40.00 to your sponsor. By recruiting others you become a
sponsor and will receive $40.00 for every person recruited.
Pentagono
Based in Italy. Costs $150.00 to join. Buy a $50.00 certificate
from a sponsor, send $50.00 to Italy with personal bank account
details and $50.00 to person in first place on list. You then
receive three certificates with your name in seventh position
and sell them to others. As more people join, your name moves
up list to the money making position.
Pentagono
Kentucky Attorney General's Office served Pentagono a Cease
and Desist Letter pursuant to a Pyramid Scheme investigation.
Personal
Power Report
Subscription fee of NZ$150 a year for Personal Power Report.
An annual distributor registration fee of NZ$25 applies. There
are six levels in this scheme for every person and for everyone
you join up on level one you receive NZ$30. For all levels
between two and six you earn NZ$15 for every person your distributors
on level one join up
Phoenix
Phone Cards International Pty Ltd
Participants are required to sign up at least three new members
per month. The first two are allocated to the person who recruited
you. Participants receive income from everyone they sign up
from the third person. You earn income as long as everyone
under you purchases $120 of 'product' each month. Product(s)
not specified.
Plane
Game & Concorde
Consumers are invited to spend $500 or more to buy a ‘ticket'
to enter the ‘game'. This is payable to a ‘pilot'
and once eight passengers have paid fares to the pilot he/she
leaves and the game splits in two. All people move up to the
next level. Co-Pilots become Pilots, the crew become Co-Pilots
and the former passengers become Crew members. Eight new seats
then become available. The Concorde game is exactly the same
except fares are $2,000 for a seat. All games collapse through
lack of new players. The majority of participants lose their
money.
Please
Put Me On Your Mailing List
Cost $30. Send $5 to each person named on the list you receive.
New participants names are added to the mailing lists of those
who received the money. You remove the name of the person
in number one spot, move others up one position and add your
name to position six. Send 200 copies of material out to randomly
selected persons. Supposedly earn four million dollars in
three months.
Power
of 8
Enter game in eighth position. Get two friends to join and
pay $20 to person in seventh position (who has sponsored you)
and $20 to person in position one. Remove name of person in
position one and add your name at position eight.
Pray
For World Peace
US$45 to enter the scheme. Money to be sent to Malaysia. Participants
receive a control code number and then can be placed on a
list in position four and be permitted to join others into
the scheme by sending information to them. You will receive
a proportion of their joining fee and of others that join
underneath them. Participants are asked to pray for world
peace when they join the scheme. No limit on the number of
times persons can join.
Price
Right Travel
Web based Travel scheme which promotes itself as having the
purpose of introducing the 'home based business of the millennium-the
travel industry'. You activate step 1 by submitting an on-line
application to purchase the product package for US$100. As
an Independent Representative (IR) you are provided with an
ID number, Product Package and an Associated Travel Agent
manual. You can then sit for the ATA exam and when you pass
you become a 'Qualified Member'. An IR is then invited to
get involved at any level and simply introduce people to the
on-line reservation system or you can market the ATA training
program to others for a great part time income.
Project
21-E-Mail
This scheme is circulating the world via e-mail. The cost
of the scheme is $A140 per month for an 'educational package'.
You purchase one such package each month for 12 months. You
them recruit others into the scheme by having them purchase
a package from you. You retain all of the money for the packages
purchased from you. It is not known what happens when the
12 month period is up and you have purchased and sold all
12 packages.
PRSI
Louisiana Dept. of Justice Served a Notice of Complaint and
Issued a Civil Investigative Demand on PRSI pursuant to a
Pyramid Scheme investigation.
Riders of Round Table
Cost $150. New member pays $25 to person in ‘white quadrant'
and progresses on to other quadrants on table and pays $25
to each. Then pays $50 to person in ‘black hole' in
the middle of the table and supplies them with own name and
bank account details. The new player is then sent six copies
of the game with their name in the white quadrants. Others
join and each pays new player $25 who progress ‘around
the table' with the influx of new recruits picking up money
in each quadrant.
Riviera
Finance and Investment Inc (RFI)
Pay a license fee of US$60 to join the 'easy start' level,
which is a worldwide forced matrix. It becomes filled as anew
people subscribe to RFI Inc. Subscribers are encouraged to
sponsor new people into the program in order that the matrix
is filled quicker. The subscriber's first when they find three
new subscribers or additional subscribers join. The next level
fill when each of those three new subscribers find three new
subscribers each. Each level becomes progressively larger.
Once the first level is filled a debit card and offshore banking
account is given an advance on the phase one entry fee plus
the subscribers 6 month purchase of natural herbal health
products. When there are an additional six subscribers at
the 2nd level the balance of the Quick Start Bonus minus the
cost of re-entry into the Quick Start Phase is given. The
process starts anew in the Quick Start Phase. The resulting
balance is paid into the subscribers debit card. From level
3-6 residual income is paid into the account. Residual income
is paid even if the levels are not full.
$10
& $5 Loan
Consumers receive an unsolicited letter with a list of ‘loan
participants'. New players send a $10.00 or $5.00 'loan' to
the person in the number one position on the list, remove
that name and add their own in position three. This is identical
to the Jane Nelson scheme above.
Self
Help Co-operation Programme
Consumer receives an unsolicited letter explaining the scheme
along with a list of five participants. The consumer is asked
to put $50.00 in the bank account of the person listed in
position two, remove the top person from the list and add
their own name and bank account number into position five.
Send out 100 copies of the letter with your name included.
Serenity,
Inc.
Indiana Attorney General's Office served a Civil Investigative
Demand on Trade Exchange Network, Inc. pursuant to a Pyramid
Scheme investigation.
SkyBiz
2000
The Federal Court in Perth (in Aug 2001) declared the scheme
to be a pyramid scheme operating in contravention of the Trade
Practices Act, 1974. Pay US$100 for a website plus US$10 application
fee and then the recruit others into the scheme to earn money.
Action is also being taken by the Federal Trade Commission
in the US concerning the business.
Sky
Electronics-used postage stamps
This scheme costs $30.00 to open a ‘file' in your name.
You are required to send 50 used postage stamps per month
to ‘earn' three cents per stamp. When your account reaches
$30 or more you can receive lump sum compensation or a ‘fully
equipped personal computer with accessories' when you join
780 other members in the scheme.
Telecom
Resources International
Indiana Attorney General's Office served a Civil Investigative
Demand on Telecom Resources International pursuant to a Pyramid
Scheme investigation.
Trade
Exchange Network, Inc.
Indiana Attorney General's Office served a Civil Investigative
Demand on Trade Exchange Network, Inc. pursuant to a Pyramid
Scheme investigation.
Trade
Net Marketing International Pty Ltd: The Laundry Solution
Purchase a product pack for $195 and buy two other product
packs or recruit others to purchase. The commission you receive
is based on the number of product packs that are sold by agents
recruited by you. The product is a ‘globe' that is placed
in a washing machine in order to clean clothes. It is claimed
that the globe changes the molecular structure of the water
and makes it ‘wetter'. The globe supposedly replaces
detergent and ‘lasts for 1500 washes'.
Treasury
2000
Cost to enter is $300. Participants are required to buy a
gemstone from a member and are given a ‘free' invoice.
They must pay $100 to the person in sixth position on a supplied
list and $100 to the team leader who sold the gemstone to
the new participant and $100 to an organization called Systems
Gems 2000. Participants receive three invoices for gems which
they sell to three others and move their name to sixth position
on the list. As more people join, names of participants move
up the list.
Vanilla
International
Based in Denmark. Participants are required to buy gold. The
cost of the initial gold purchase is 500 Swiss Francs. A deposit
of 80sf is required and by recruiting others into the scheme,
their 80sf deposits are used to pay off your purchase. The
more people you join up, the more you earn and the further
you progress through the ‘Gold Accumulation Plan'.
World
Aid Sponsorship Program International
Pay $40.00 per month towards a sponsorship for 'meaningful
assistance to communities within Australia and throughout
the world.' by direct bank account debit. The communities
to receive the assistance are not named. By recruiting others
into the scheme participants receive a commission and can
move to four levels (340 people).
Women's
$1 pyramid scheme
A consumer receives a list of four women's names and are asked
to send $1 to each person and then remove top name and add
their own at the bottom of the list. Consumers are asked to
send out 10 copies of the letter and sit back and wait for
the money to ‘roll' in.
World
Awareness International
Cost is $60 per month to purchase 60 Oxi-Supa tablets. By
recruiting four others into the scheme participants obtain
$10 commission on each. By assisting those four recruits to
join four others further commissions on each purchase are
earned. Varying amounts can be earned depending on the number
of recruits. For those who have 340 recruits a payment ‘is
donated to a charity' that the company says complies with
its ‘stringent requirements'.
I welcome
your comments,
questions and suggestions.
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