The Government is Serious

[MatrixWatch]

The government is serious when it comes to running illegal schemes. Here is a caption from the California Newspaper that ran the story. No, those are not new Tiffany bracelets they are wearning behind their back.

[poorme]

Do you have more details?
Is it a matrix site?

[mikv]

I believe it was an organization setup to help women but they used a similar list structure that a matrix site does to get the money for people. They didnt' sell electronics or ebooks or anything like that, so I would say NO it wasn't a matrix site. More of just an outright Pyramid, all participants had to bring in others with them in order to participate. I remember reading a little about it, but it was a while ago and I don't remember everything about it. I may be off a bit.

[uwantme]

If memory serves me correctly women helping women was like a "gifting" club or pyramid scheme. I believe the basis was something like you gave $500 to join and was placed where ever you fit in next in the pyramid and when you got so many other women pay in the $500 you got like $10,000 back. But they were doing the classic pyramid scheme. No products invovled and cash was awared strictly on the bringing in of new members to the club.

[uwantme]

Here are some links that actually talk about it:

http://www.police.midland.on.ca/alerts.html

http://www.mfg.ca/news/2002-1025-womenpyramid.html

This one even has a diagram: http://hometown.aol.com/massenapyramid/myhomepage/business.html

http://www.stocktongov.com/police/pages/pyramid.htm

http://www.sonoma-county.org/Da/wew_pyramid.htm

That should be enough info.

[concerned]

Yeah, it was a classic pyramid scheme, but they used tactics similar to what the matrix sites are doing. They also MISINTERPRETED the law around their scheme. They were using an income tax law that allowed GIFTS to be given under a certain amount without having to report it as income. According to them, they said it was LEGAL because they had the FREE WILL to give away gifts to whomever the wanted to. You see, it is almost the same with matrix sites because they tried twisting a law also. In the case of the matrix sites, they are selling something of little to no value as a front just like these women did with their gifts.

[poorme]

. In the case of the matrix sites, they are selling something of little to no value as a front just like these women did with their gifts.

Good point. I agree. Why does it take the judge so long to pin down the matrix?

What is the verdict please?

[concerned]

There are cases like these being tried all over the US. In the state that I live in, NOT CA, there have been a couple of women convicted and fined. If I find more information from my state, I'll post it.

[concerned]

Here's one that I found in New Mexico.

http://www.news-bulletin.com/news/33596-06-07-03.html

[concerned]

Here are a few more.

http://abcnews.go.com/wire/US/ap20030222_117.html

http://abcnews.go.com/sections/wnt/DailyNews/gifting_scam021101.html

I couldn't find the one from my state, but will still look.


Here is one that I think might have been posted already. This article really sounds close to the matrix concept. The article says that they were given food in return for the money. Sounds like getting an ebook.

http://www.sonoma-county.org/da/pyramid-alert.htm

[poorme]

Thanks very much Concern
I like this statement :
Pyramid schemes are illegal in California. They are a form of theft. It is mathematically impossible for everyone enters to recover their investment let alone make a profit. It is inevitable that at some point there will not be enough new recruits to the scheme to pay back those who have paid.
.

[peterdragin]

uwantme should read these articles, they are just like her favorite Matrix is set up.. 10dlaptop & thegreatfind.

They even show a ladder type Pyramid on the info page.

[uwantme]

I did read these, but what I am assuming what you are missing with thegreatfind and 10dlaptop is that they are both free to join. If you dont have to pay to get in then its not illegal...... On top of that I think there are some other things like you arent earning your items by recruiting other people, you earn your items by selling the jewelry for the site etc.. Im not exactly sure of all of the ramifications but I think getting in for free is the big one.....

[peterdragin]

But if you want a gift you have to pay.

[uwantme]

No you dont, read their site. You can get the free gift without paying. You just have to make 1 more sale of their packages than people who pay. This is copied from their message board:

As many of you may know by now we are doing many updates to the site and one is we will be taking our 8 original packages these are A1-A4, and B1-B4 and making them into a free affiliate program. The new programs will work like this. You do not have to pay to be placed in the matrix. You can enter for free but you still have to earn your free item based on sales from yourself and the downline. Also members who join for free must earn 1 more sale to get their items then members who pay. They are updating all of their programs to be like this and from what I understand you can already sign up for free..