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FIB - Scams 101

gifting clubs, gifting circles, gifting ad nauseum

Posted By: Dennis Bevers
Date: Monday, October 6, 2008, at 8:15 p.m.(pst)

In Response To: Re the gifting opportunity (Paul)

>> Can anyone tell me if the give 1 up gifting of money opportunity is a
>> scam or not?

Yes! Gifting in any program where you expect to receive a larger payback is illegal in every state in the US and most countries in the western hemisphere. It doesn't matter what they call it, declaring it to be a private group, etc, it's still against the law. Even if it wasn't, you can't get more unethical than building a pyramid where more people are required for every layer, allowing those on the top to get their payoffs.

The gifting clubs, opportunities, etc, fall under Ponzi schemes. There is nothing new about them, except for how they try to disguise them and convince the newbies that the programs are legitimate.

>> A lot of people claim they are makeing big money with this
>> sort of thing.

Primarily those who start the gifting clubs and the first few layers (made up of cohorts, family members, or even themselves using alter egos and various addresses). After a couple layers, or a couple cycles, the programs usually collapse, or survive long enough to come under scrutiny of the law.

>> Did anyone here ever get caught with this sort of thing?

Yes, but most fall apart when the newest victims can't recruit enough people under them to "give" into the group to keep it going. Because of the short life of these groups, the people who start them can relocate and start all over in another state, working to stay one step ahead of the Attorney Generals and the Federal Trade Commission.

Some even operate with offshore banking to make it harder to find and recover the ill-gotten money.

Ignorance of the law is no defense. Ponzis, pyramid schemes, and gifting clubs exchanging more than coupons, recipes, or dish towels are illegal.

Dennis Bevers

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