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You are correct Jon
Posted By: Josh Anderson In Response To: FTC agrees with me (Jon Andersen)
Date: Friday, 9 July 2004, at 10:59 p.m.
Hi Jon,
What you have posted about ponzi and pyramid prosecutions revolving around the legit product vs. recruiting for money is absolutely correct.
All my research (hundreds of hours of it and live interviews with experts in this area of law) point that it would be best to avoid the program being discussed here.
Many think because they make money or avoid prosecution they are within the law yet may be dangerously mistaken.
Due dilligence in this case does not stop at contacting the owner of the program and asking him if it is legal.
Due dilligence includes researching out the federal laws and paying attention to your gut feeling and not the excitement from finally finding a Ponzi scheme that pays you money.
Many Ponzi schemes and their derivitives like the program being discussed above (which is just another scam trying to get around the law and acheive the same effect) never get prosecuted simply because of the volume of scams out there.
Plus programs like this one may lie seemingly in a grey area legally and will not be stamped illegal untill the SEC gets to their neighborhood.
I said it once and I will say it again...
These scams are simply "White Trash Marketing" at their finest. Money for nothing preying on the hopes and aspirations of unsuspecting newbies who like millions out ther would like to win a lottery so they can make money and do nothing.
Unfortunately proliferating this attitude does not produce successful business owners but produces...
Failure and in some unfortunate circumstances Jail Time.
Selling a money shuffling machine with tiney print about some bogus advertising service they include to make it "legal" does not fool the authorities once they get around to investigating.
Do the research and stear clear!
Here are a few links that will help others see clearly through the blindness of those making money with these scams:
http://www.smithsonianmag.si.edu/smithsonian/issues98/dec98/ponzi.html
http://www.sec.gov/answers/pyramid.htm
http://home.nycap.rr.com/useless/ponzi/ "False Profits" by
Robert Fitzpatrickhttp://www.pyramidschemealert.org/ Pyramids don't pay. The Federal Trade
Commission cautions consumers about clubs or programs that promise quick
money for recruiting new members. Don't bank on the pyramid promise that
someone else will pay you. For more information on get-rich-quick schemes,
visit the FTC at www.ftc.gov . (48 words)Avoid the rubble of a fallen pyramid. The Federal Trade Commission
cautions consumers about the promise of easy money through a downline,
matrix, or binary pyramid plan. Don't bank on the promise that someone
else will pay you. For more information, visit the FTC at www.ftc.gov .
(50 words)Don't let a downline bring you down. Pyramids are illegal. The Federal
Trade Commission caution consumers not to fall for promises of quick money
through new member recruiting instead of real product sales. For more
information, visit the FTC at www.ftc.gov . (45 words)This is a public service message suggested by the Federal Trade
Commission.Although it may not be clear whether the program falls in this category it
certainly is not a legitimate and respected business providing legitimate
and repected services. The people attracted to this opportunity are
interested in only one thing...Being at the top or middle or bottom or wherever they have designed the scam to pay out at. The formation Pyramid - Circle - or Square, does not matter when the FTC, SEC, or FBI come knocking at your door.
Here is a handy little tool that will show you who wins:
http://www.homepage.net/pyramidcalculator/
Josh Anderson
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