Internet Pyramids

Schemes, Scams, Frauds.

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Pyramid Scheme Internet Fraud Examples


Wholesome Goodness

Professional Resources System International utilized a pyramid scheme disguised as a network marketing company to entice consumers to join their "members only" intranet which would allow members to buy and sell merchandise. The company and its employees offered you a chance to earn money by purchasing a home business opportunity known as the "SOHO System" at a cost of $295.

This private intranet would not only allow members to buy and sell merchandise, but it was also portrayed as "wholesome", claiming that PRSI wanted to fund programs that would keep kids off drugs, out of gangs and stop them from being exposed to questionable materials on the internet.

An investigation however, revealed there was no product and that promoters never intended on offering a product. Their sole reason for existence was to recruit "Cybermanagers" to keep the money rolling in and the scheme operational. It was estimated that 60,000 consumers worldwide were tricked into buying into PRSI's scam at a cost of approximately $18 million.


Fortunately Some Recovered

Fortuna Alliance advertised and marketed their pyramid scheme on the Internet. They also used telephones, faxes, and mail to distribute their promotional documents and audio and video tapes.

Their promotional materials would entice you with the following suggestions:

"What if you paid $250 a month, which produced a minimum of $5,250 income each month for you, while you watched?"

"Well that's exactly what would happen if you hired Fortuna Alliance as your personal Marketing Expert."

The promotional materials explain that only the initial $250 investment comes from you; any further payments are deducted from "profits". They encourage you to make multiple investments, up to $1,750 per person, which provide promotional materials for recruiting new participants.

They attempted to distinguish their plan from other pyramids by suggesting that the high profits are attributable to a mathematical formula called the "Fibonacci series". In fact, the formula for distributing profits in any pyramid scheme has no effect on the end result that most participants lose money.

Unusually lucky were the 15,622 victims who invested in Fortuna Alliance. While total losses topped $11 million, investors in the U.S. and seventy foreign countries are actually receiving court enforced refunds of approximately $5.5 million. The refunds were to be paid from $2.8 million Fortuna transferred back from an offshore bank in Antigua, West Indies, and an additional $2.35 million which was frozen in the U.S.

Although the case against Fortuna by the FTC had been settled without admissions of liability, contempt of court citations were sought against the owners after the FTC charged that Fortuna misrepresented to the public that it had been vindicated in its case.

In fact, the FTC maintained that 9,000 consumers had requested $5 million in refunds and the company had only posted $3 million for those refunds, leaving a deficiency of $2 million.

The FTC accused the company of foot dragging, for discouraging members from applying for refunds, as well as resurfacing with its opportunity as "Fortuna II."

Fortuna II responded on its internet site that Fortuna Alliance "had not been treated fairly and would march forward with its opportunity by operating from off-shore venues, as well as with offices in Canada, Holland and New Zealand."

They planned to reorganize into "an organization with improved programs for the membership and built-in protection from any country's arbitrary abuse of power over its citizens" like their "most devastating experience at the hands of a brutal U.S. regulatory agency, the Federal Trade Commission." "This means that a raid by the governmental agency which put Fortuna Alliance out of business without a warning or a trial to prove guilt of any kind, will never happen again."

In addition to offering its various types of memberships, Fortuna Alliance II also had for sale 250,000 profit-sharing certificates at $100 ($25,000,000) with a guaranteed return of 20% during the first year.

continue QuickTour


A Plane Old Pyramid

Using computer programs along with the domain name "GoldenGalaxy.com.au" one pyramid scheme "game" enabled people to participate in it right on the Internet.

The rules of the game were based on a seating plan of a small aircraft. There are four levels of players comprising the pilot, two co-pilots, four crew members and eight passengers.

Games are played at various values and all persons in the one game pay a similar amount to participate. Payments are in US dollars which the participants pay directly into the Golden Galaxy Trust account.

The pilot is eventually entitled to receive the amount of money paid by all eight passengers less a five percent fee which was paid to the company Golden Galaxy Pty Ltd as an administrative charge. He then leaves the game.

The game then splits into two games and the original two co-pilots become a pilot in one of the new games, the four crew members become the two co-pilots in each game and the eight passengers become the four crew members.

When either of the new games have eight people recruited as passengers, paying the same amount of money as the original passengers, the pilot (formerly a co-pilot) is entitled to his payments as above and the game splits again. In other words all pilots receive about eight times the amount they pay to participate in the game, if the game is completed prior to the structure reaching critical mass.


Extremely Profitable for Some

Participants in one scheme were solicited from the Internet, as well as through telemarketers, faxes and infomercials that offered testimonials from people standing in front of luxury homes and cars. The pitches promised a chance to earn $3,500 to $15,000 a month and the opportunity to retire in two to five years.

Prospective participants were asked by USAsurance Group Inc, Akahi Corp., 2Xtreme Performance International LLC and AFEW Inc to put up sums ranging from $10 to $7,300 and to recruit others to sell nutritional and beauty supplements and other products such as "Business in a Box," which was a package of mailing lists, envelopes and marketing brochures and flyers.

The FTC said the companies' ads claim they have recruited more than 60,000 consumers. An undated press release from USAsurance posted on the Internet said 2Xtreme Performance "generates annual gross sales of $40,000,000."


Skybiz Heads for Warmer Climate

February 5, 2001

Hello, Mr. Henderson!

My name is Lena Liew and I work for an English daily in Papua New Guinea. Your website is most impressive indeed. I trust that you are sincere in your intentions. Before I buckle down to digest the contents of your website, I thought I'd just ask you if you have come across "Skybiz.com", a Nevada-registered company which markets software for people to build their own website - linking off the main website - for their own purposes. Was http://www.skynary.com 

It seems that Skybiz is aiming to be the largest Internet membership network in the world, so that it effectively has a massive customer base for future products and programs. What better to achieve that than by providing incentives for existing customers to recruit more customers ...

PNG is a developing country which is rather backward, especially in terms of IT awareness and investment savvy. Skybiz is currently aggressively promoting the "recruitment" aspect of this scheme here - that you can quickly, easily and exponentially earn massive profits by getting others to sign up and earn a very attractive commission. 

A great many Papua New Guinean suffered a lot when the country was hit simultaneously by more than four "fast money schemes" in 1999. Not that the people could spare the cash ... most ordinary people can't even afford to eat three meals a day. Yet the communal spirit and the church are very strong elements here ... so go figure.

Two years on and thousands of people are still yet to see a single toea in return. Being just half an hour's flight away from the nearest Australian airport, and a former colony of Australia, PNG easily suffers greatly from con jobs imported from Australia. No thanks to a "big brother knows best" mentality.

I attended one of the Skybiz seminars here in the PNG capital of Port Moresby last week. It was conducted by a Papua New Guinean man armed with a video of a seminar conducted by "the man who brought Skybiz into Australia". Participants at the seminar that night were exhorted to quickly go to the bank first thing the next morning and get a bank draft for US$125 (US$100 annual fee plus US$25 membership registration). That's a lot of money by ordinary Papua New Guinean standards ... even for professionals.

I was initially looking to write a feature promoting what I thought was a Papua New Guinean initiative utilizing the wonders of the Internet to try to do some good for Papua New Guineans. But the more info I sought and found, the fishier it's smelling.

Skybiz is not registered in Papua New Guinea. Can you tell me more? What do you know about Skybiz's presence in Australia?  Thank you very much for your time and attention. I look forward to your speedy reply. I assure you I will promote your site as best as I can.

Sincerely, Lena Liew  The National newspaper  Papua New Guinea


Hi Lena,

Although I refrain from commenting on current operations until they have been charged or convicted, I suggest you do a search at the bottom of any site page for the info you want on Skybiz. I have linked from the search function to over 200 fraud-related sites, some of which are not afraid of being sued. There is plenty of info on Skybiz at WorldwideScam as well.

Would love to read your article when it is ready.

Les


Special Note:  After her paper ran a three part article on Skybiz which I thought was both informative and fair, the head promoter ran full page ads in all three papers denouncing her report.

Excerpts of which include:

"Skybiz is not a pyramid scheme. Skybiz has been in business for 3 years, it is in over 220 countries and hosts over 2 million websites."

"Lena must know that the internet is a global market where the world trend of business is in this new millennium, and Papua New Guinea is part of the global internet business trend and no Journalist of any race or colour will ever change this global business trend."

"Why in the world would a supposed pyramid scheme motivator spend millions of dollars developing actual new products? ( such as the sensational new web builder and the incredible educational package ). Also, a pyramid scheme operator would not be opening up million dollar custom care centres around the world."

"There is not a single instance of a confirmed illegality on the parts of Skybiz, Skybizzers or myself but merely a rehash of reports of government agencies sloppily and unsuccessfully going about their statutory obligation and envy-fired predilection for perfunctorily examining and smearing any new and successful business."

"Clearly it is difficult to counteract adverse rumour-mongering. The only real option we have as entrepreneurs is to continue to build our businesses with the three essential ingredients of consistency, enthusiasm and integrity and then supporting those who choose to share our vision of a brave new world."


FTC Takes a Whiz on SkyBiz

Another operation I have had to wait to comment on until now is the Tulsa, Oklahoma based, but internationally active, SkyBiz.com which still purports to offer a business opportunity selling personalized Web sites to consumers for just $125.

Though allowing it, and many other similar opportunities, to operate for years, the Federal Trade Commission, now alleges that the company's real business consists of selling memberships in a pyramid designed simply to draw new participants into the Skybiz opportunity network.

They have convinced a federal judge to freeze the assets of the operation that they allege bilked consumers worldwide out of $175 million and feel may be one of the largest ever Internet pyramid scams. The temporary order halts Skybiz.com's activities pending a hearing to determine if it meets the criteria for a pyramid scheme which are considered "inherently deceptive" under U.S. law.

It is estimated that only about 13% of the participants in SkyBiz received any sort of payment from the pyramid structured organization and only about 6% have made back their initial investments. This has not detracted from the fervent zeal of participants who will likely rush to the defense of the company and denounce the "unwarranted" government intervention.

Skybiz attempted to avoid the pyramid selling scheme label by offering to each new customer a set of Web site creation tools but the scheme's true nature emerged when it was noted that many of the sites, which were provided with much fanfare, are never used by participants and are just purchased to gain access to the chain of commission payments generated from focusing primarily on the recruitment aspect.

It was felt that they were just window dressing for the underlying scheme in which SkyBiz, and its key organizers alone, appear to have made money from the pyramid-based operation as a result of being at the top.

The FTC will ask the court to close down the operation and pay reparations to consumers.


03/24/03 - SkyBiz owners Elias Masso, James Brown and Kier Masso did not admit or deny guilt as part of a settlement but agreed to pay back a total of $20 million in proceeds and stay away from "multilevel marketing schemes" for periods up to 22 years, according to the FTC who charged that Tulsa-based SkyBiz Inc. made money primarily by recruiting sales associates who paid a fee to market its Internet tutorials.

The company, which also operated as World Service Corp., WorldWide Service Corp., and Nanci Corp. International, told its 1.5 million recruits in 190 countries that they were likely to make substantial income, when in fact 96 percent never made back the $125 they paid to join, alleged Jim Elliot, the FTC attorney who handled the case.

One other owner charged in the case reached a separate settlement last year, while another is scheduled to stand trial in April.


Federal Trade Commission v. Skybiz.com, Inc., et al.
The Federal Trade Commission announced a settlement in this matter. The settlement provides for distribution of $20 million dollars in consumer redress that will begin in the near future for victims of SkyBiz, an alleged massive international pyramid operation. The settlement also bars the defendants from participating in pyramid schemes in the future, and bars them from misrepresenting business ventures.


On January 28, 2003, the U.S. District Court in the Northern District of Oklahoma entered a Stipulated Final Judgment and Order for Permanent Injunction between the Federal Trade Commission (FTC) and SkyBiz.com Inc., its principals and related entities (SkyBiz). As a result of the lawsuit brought by the FTC, $20 million dollars has been recovered and has been set-aside for former members of SkyBiz.


Peter Pans PrimeBuy

May 4, 2001

Hi Les,

Firstly, I must congratulate you on a great site.

I am writing from Australia, in regard to a California-based company called PrimeBuy Network.com. This would have to be one of the worst (..) ever.

Typically participants pay around $US1000 to buy "an entrance to a shopping mall on the internet", but effectively they are buying the right to promote the opportunity to other participants. The participant gets a website with links to other merchant sites, and is supposedly paid a commission whenever goods are purchased via the participant's (or their downlines') website(s).

But the real money is being made simply by the activity of recruiting. Participants are paid some small amount (I think around $US200) once they have 2 people in their downline, and are paid a lot more once they have 6 people (something over $US2000, I think). The top distributor in Australia has boasted about receiving over $US100,000 in 18 weeks.

I realise that there are hundreds of these (...) schemes out there, all with minor variations, but what make this one stand out is the comparatively large amount it costs to join, and the correspondingly large amount that can be paid out.

Even though it is expensive to join, the large amounts that could potentially be paid out make this scheme extremely seductive. Once people are in, they realise that they have spent a lot of money, so they are desperate to find 6 others so that they can get there money back. This means that they will do anything, tell any lies or compromise their integrity, not to mention time and legwork.

I feel there is little I can do, especially from Australia, but I am desperate. My wife was "conned" (against my judgment, although I did not realise at the time how serious it would become) into it by a "friend" (who basically survives by jumping from one networking opportunity to another) and now she has signed up a number of her friends and some of her immediate family.

She is now pouring her heart and soul into it (to some extent neglecting our 4 young children), and I can see that some of the friends she has signed up are now endangering their marriages and families. Also some of these friends don't even have computers or internet access. So I feel this scheme (and a lot of network marketing) is not just a bit of harmless fun, but a very serious matter.

Other schemes may only require around $US200 to join, so after a while participants get sick of it and the damage is limited, but this one constitutes a serious financial investment for many.

My wife is spending so much time at meetings, talking on the phone to her up-line and downlines and prospecting (by phone and in person) that she now seems to be absolutely brainwashed by all the stuff they put about. The biggest fib I hear is that the internet shopping side of the business will come good in a couple of years, and by then she will be in an excellent position to benefit from it.

Nothing I can say to my wife can get through. I think that the only hope of getting my wife back (apart from a miracle) is the have the US authorities close these guys down, or at least make sure that they get a lot of bad press and are exposed. I have already lodged a complaint with the FTC and the ACCC (Australian Competition and Consumer Commission) but they did not get very far, and with Better Business in California (which might have been a bad move). In Australia it is illegal to participate in or promote such a scheme, so I could possibly go after some of her up-lines, but I am not sure I can afford to do that or whether it would be very smart in any case.

I am not too worried about the money we have lost (although I worry about friends of ours who are less well off that us). My wife will probably eventually be one of the lucky few at the top who come out ahead, as she has the drive, personality and energy level need to make this thing work. I have a good job and I don't feel we need the money (certainly not this desperately), the important thing is our family life, personal integrity and the friendships and marriages that are in jeopardy. One things that appeals to her is the opportunity to have a successful home-based business of her own, but there are much better, ethical and legal alternatives to this one.

I am not sure how much you can do to help, but if you have any better access to the US authorities that what I have, or have any further information or suggestions, I would like to hear from you.

Here are the details on the company.

PrimeBuyNetwork.com, Inc
4000 Barranca Parkway, Suite 220
Irvine, CA 92604

http://www.PrimeBuyNetwork.com/sow

Cheers


Hi Peter,

Thanks for the kind words about the site. I hope that I can do something for you after hearing your impassioned plea.

First let me say that my resources amount to just me. The authorities totally ignore me and refuse to promote or assist a "commercial" venture despite the fact I run at a major loss hoping to sell enough books one day.

Once a person is swept up in the hype of any of this MLM pyramid stuff you have almost lost them to a cult. Self-worth is attached to the worth of the opportunity. Any attack is personal. I feel for you and your dilemma.

I would like to print your story with your permission on the message board with or without your name, in the hopes someone might have a viable suggestion or at least to warn others. I have to refrain from writing about current operations prior to convictions because they just sue me for libel.

Because this opportunity is referred to by most as MLM I suggest you do some searches for the company name in quotes , then try MLM, "internet mall" in my search box at the bottom of any page. Also try FTCsearch and visit Worldwidescam and Pyramidschemealert to see if they have anything.

I will do some looking myself when I can. Apart from the Reporting Fraud page I don't know what you can do to stop it and still retain your marriage. Awareness is the main weapon that I try to get out there.

When your wife is still participating it is hard to go after them full steam without hard feelings. Damn, I feel as helpless as you.

Les


Hi Les,

Please feel free to use my letter, but I would not like my name or anything that could identify me to be used - as you can see that is all very sensitive at the moment. PrimeBuy seems to be known to the Worldwidescam site, but have not received the attention that BigSmart.com has (even though they are operating what seems to me to be an almost identical operation).

Among their credentials, one of the founders claims to have established many network marketing companies, which looks highly suspicious. It seems to me that these guys go around having minor brushes with the law and continually re-inventing themselves.

Cheers


The SEC, acting on complaints from 27 states, can now pursue fraud charges against an Internet gambling site that ran a "virtual stock exchange" which they suggest is nothing but a pyramid scheme.

SG Limited and SG Perfect Limited, who insisted before the courts that it was not selling an investment and therefore the SEC has no say, ran the StockGeneration Web site game where "Investors" played by sending real money in and then buying "stocks" in fictitious companies. The player would then supposedly win or lose money based on whether the purchased company's value increases or drops.

There was, however, no computerized method for the "stock" going up or down; it was apparently done entirely at the whim of the game's managers who, operating the site from the Caribbean island of Dominica, promised risk-free investment and a guaranteed annual return of 215 percent.

They indicated that they had more than 325,000 players from more than 70 countries, and had paid out millions of dollars in prizes before the Web site was closed down. The company's $6.5 million in assets will be frozen until the matter is resolved.


Forget the Debt

One bulk spammer, Klassikal International Pty Ltd, and its directors, Joseph and Afaf Helmy, sent out e-mails which offered receivers the chance to repay $200,000 worth of debt with just $2,200.

"We'll pay your debts and you don't have to pay us back… EVER," the e-mail from the Debts Processing Agency read, according to the Australian Securities and Investments Commission.

What the e-mail didn't say is that applicants would have to enlist other people to the scam in order to get their money back, making it a pyramid scheme.

ASIC said the payment to join the scheme was disguised as a fee that was supposed to eliminate debt. The only way to actually move forward was to sign up others to the scheme, and send out more junk e-mail.


25 Oct 2001

I wonder if you could tell me why I should not be in this program,
http://www.goldspill.com/members/179611

Thank you, below are the ones I know you should not be in,
Le Club Preve, LeBaron Trust, Strategic Assets Funds, Global Just Rewards, Pentagano, Bachval, Tri West Investment Club, to name a few.

Regards
JK

Response: For someone so in touch with pyramid schemes you should hopefully recognize the telltale signs.


Much Better Than Just a Letter

One scheme that attracted attention was called "Network Gold Power Disc," which was nothing more than a new version of the chain letter using a computer disc.

For five dollars, players of "Power Disc" received a computer disc with four names and addresses to whom you were to send five dollars each. You then added your name to the list, advertised and sold the disc to more new players.

Players were told they could expect to receive $19,550 in 12 weeks, but all some of them received were warnings from the attorney general to cease participating in the illegal chain letter.


Negative Option Millionaires

A few months back I joined a free program and then...promptly forgot about it.

... now more than 2000 paid members under me in a program that I had never promoted? All I had to do was upgrade to a paid membership before the end of the month and I would have my position locked in and a downline of 2185 people.

My sponsor's, sponsor's check, which is a minimum of $5,000, arrives every month...on time.

... watch your downline grow? Just join Post Launch...

... After having several negative experiences with network marketing companies I had pretty much given up on them. This company is different--it offers value, integrity, and a REAL opportunity to have your own home-based business... and finally make real money on the 'Net.

... Their revolutionary Vertical Integration Plan is amazing and GUARANTEES that you will have PAID members placed in your downline... You have nothing to lose and potentially a LOT to gain. Just do it!


Naming No Names, Yet

While clicking around the internet for some sort of 'opportunity' out there I signed up with an MLM Co. at the beginning of December 2001 and continued to receive notifications of affiliates signing up under me.

I was told that I would receive a percentage cut on affiliates who became 'qualified' from introductions made by those in my 'upline'. I was also informed that I would receive at least $9 for becoming 'qualified' myself. (A person remains qualified at a cost of $30 a month)

I sat on the end of my chair excitedly waiting for the end of the month. The result? My commissions page showed that I had only $8 to my credit, ($1 for administration costs) and NO commissions for those who had joined under me.

I have still not received any payment or advice as to how, when and where I will receive my $8 (not that I'm waiting on it). Perhaps the fact that I am resident in the UK and the Co. is in the USA could have a lot to do with it, although they claim to be global.

As I am still in subscription till the end of January, I choose not to name the MLM Co. at this stage, perhaps things will change. I am almost scared to ask this, but is there a listing of MLM scams at an expose site somewhere?

John Neeson 01/09/02

Check out www.worldwidescam.info for one of the many programs which could fit the bill.

They rightly suggest that of all the MLM pyramid schemes on the Internet, none are more offensive than the charity-themed programs featuring photos of starving children which promise to make you wealthy while helping those less fortunate.

Please do not join, promote, support, or donate to any of these charity themed MLM pyramid schemes:

NourishtheChildren.com
HelpingHands.com
HumanitarianEffort.com
American Cancer Aid Foundation

The function of any pyramid scheme is to simply enrich the promoter and while it is remotely possible that a few people receive some help from these programs there is no way to verify ANY contributions.


Promises touted by the Follow Me Club

THE FOLLOW ME CLUB

HOW MUCH MONEY WOULD YOU LIKE TO RECEIVE EVERY DAY?
$100 DAILY $500 DAILY? $1000 DAILY? LOTS MORE?

Well, NOW you can. The uniqueness of our daily and monthly Cash Flow System allows anyone to generate HUGE SUMS OF MONEY on a routine basis.

Not only that, as soon as you start receiving a specified amount of money ( by using our remarkable CASH FLOW SYSTEM ), the Club will introduce you to eye-popping investment practices that can make you very wealthy in a hurry! Right this minute there are average folks with average intelligence gaining upwards of 100-200 PERCENT PROFITS within 5 to 45 days using these unique, but safe and formulated, investment methods. Annualized profits of over 1000 PERCENT are commonplace. And, very soon, you can be making these kinds of profits!


SIX WAYS TO GENERATE A STEADY STREAM OF MONEY
FLOWING YOUR WAY!


CASH FLOW PROFITS # 1 ( PAID DAILY )
As a Bronze Club Leader you receive $150 for each of the two people you sponsor into your
Club Leader's VERTICAL DEVELOPMENT LINE.

CASH FLOW PROFITS # 2 ( PAID DAILY )As a Silver Club Leader, you receive $225 for every person that you sponsor into your
personal VERTICAL DEVELOPMENT LINE, through infinity.

CASH FLOW PROFITS # 3 ( PAID DAILY ) Also, as a Silver Club Leader you receive $75 for every additional person who is sponsored into your VERTICAL DEVELOPMENT LINE by others, through infinity. And get this. Each of them will be sponsoring two more people under you before being qualified to start their own string of followers. This adds deeper and deeper combinations of people below you that DOUBLES in progression. Example: Your vertical line of followers starts with one person, then 2, then 4, 8, 16, 32, 64, 128, 256, 512, 1024, 2048, and so forth through an endless depth, but in a single-vertical-line beneath you.

CASH FLOW PROFITS # 4 ( PAID MONTHLY )

Plus, as a Silver Club Leader, you receive $225 monthly from every person in your VERTICAL DEVELOPMENT LINE of followers who promotes himself or herself to a Silver Club Leader. That's $225 per month multiplied by dozens, or hundreds, or thousands of Club Leaders who will be purchasing Product and Service Packages from you through the Club.

CASH FLOW PROFITS # 5 ( PAID MONTHLY )

Amazingly, you also receive $1050 monthly from every person in your VERTICAL DEVELOPMENT LINE who promotes himself or herself to a Gold Club Leader. That's $1050 monthly multiplied by a "lot of people" through a bottomless depth.


VENTURE CAPITAL CASH FLOW PROFITS # 6
As a Gold Club Leader, you will be introduced to unusual methods for making your (optional) investments grow in safe environments. To learn how, you will be invited to attend domestic and offshore investment seminars which can cost thousands of dollars each. But don't worry, as a Gold Club Leader you will be financially able to attend every training session in first class style.

NOW, LET'S CHARACTERIZE HOW ALL OF THIS WILL WORK FOR YOU AS AN
INDEPENDENT "ADVISOR" TO THE FOLLOW ME CLUB!

BRONZE LEADERSHIP PACKAGE - $300 (One time)

$75 (25%) to The Club - $75 (25%) to Your Club Leader - $150 (50%) to your Sponsor

Your Leadership Training Package is a one time purchase. There are no additional purchases from the Club or from your Club Leader until you sign up two (2) new Club "Advisors" and advance to a Silver Club Leader.

You receive $150 for each of the first two people you sign up in your Club Leader's VERTICAL DEVELOPMENT LINE. (Total $300) Then you will want to use your $300 to start YOUR VERTICAL DEVELOPMENT LINE in the next phase.

NOTE: You will always purchase your SILVER and GOLD Product and Service Packages from the Club and your Club Leader on a 25-75 split arrangement.

SILVER LEADERSHIP PACKAGE - $300 per month = $75 (25%) to The Club - $225 (75%) to your Leader

As a SILVER LEADER in The Club, you will receive $225 for every person you sponsor into YOUR VERTICAL DEVELOPMENT LINE. Plus, you also receive $75 for every new person sponsored into your VERTICAL DEVELOPMENT LINE who buys a Leadership Training Package. Plus, you will receive $225 monthly ($2700/yr) from every person in your VERTICAL DEVELOPMENT LINE who GOES-SILVER!

NOTE: All earnings on Leadership Training Packages are PAID DAILY! All profits on SILVER Product and Service Packages are PAID MONTHLY! Plus, you need only 8 people purchasing Silver Product and Service Packages (from you) and you qualify to GO-GOLD!

GOLD LEADERSHIP PACKAGE - $1400 per month = $350 (25%) to The Club - $1050 (75%) to your Leader

As a GOLD LEADER you will receive $1050 monthly ($12,600 yearly) from every person in your VERTICAL DEVELOPMENT LINE who GOES-GOLD. Plus, each of your GOLD Leaders will continue to purchase their SILVER Product and Service Packages from you which pays you $225 per month (totaling $2700/year).

Plus, you still receive $225 for every new person you sponsor into your VERTICAL DEVELOPMENT LINE. Plus, you will continue to receive $75 for every new person sponsored into your VERTICAL DEVELOPMENT LINE by others.

THERE ARE NO HIGHER LEVELS OF ADVANCEMENT AS A CLUB LEADER OTHER THAN: (a) BEING AN ENCOURAGEMENT TO THOSE IN YOUR VERTICAL DEVELOPMENT LINE; AND (b) MAKING YOUR MONEY GROW 50 T0 100 PERCENT YEARLY (OR MORE) YEAR AFTER YEAR!


More Hype On How to Become Rich

If you ever dreamed of staying home, spending more time with your loved ones, and becoming financially free all at the same time? THEN THIS IS YOUR CHANCE!

If you have the desire and willingness to earn more income each month and have the ability to follow some simple instructions, you too can become one of the thousands of Americans who are achieving financial freedom every day. You WILL find out how to:

* Get PAID without "sponsoring" ANYONE
* Get a MasterCard you never have to pay back
* Completely pay off ALL your debts (Credit Cards, Auto Loans, etc.)
* Get paid to assist Friends & Family amass wealth, IF you wish
* Learn "How to Get Rich Without Winning the Lottery (and Keep It)"


Not So Perfect After All

I want to report two sites that are, in my opinion, very misleading, if not downright fraudulent: ThePerfectMatrix.com and the Generator.com, which is a "feeder" system for Genesis.com, which demands several hundred dollars for its "forced matrix."

I paid around $100.00 to get into both the Perfect Matrix and into the Generator, neither of which has yielded me anything. You might want to look into these two horrid scams

Thanks, Gwyn, from Memphis 11/01


Dear Internet Friend,

I would like to introduce you to the most powerful cashflow system you'll ever come across. Bring only two people in and you are on your way to financial FREEDOM!

Yes - THIS IS FOR REAL. THIS IS NOT HYPE! I will help you get your two members. We are a club that believes in the power of T.E.A.M (Together Everyone Achieves More!!)

Too Good To Be True? - NOT! - IT Really WORKS!!! This is definitely a winner!!

Our unique CASHFLOW SYSTEM will put CASH in your paypal or e-gold account NOW and EVERY MONTH!! SO MUCH better than the 2X2's out there...or even the 1X2's...

With our One Up Plan one person can put hundreds of people in your organizations and you get paid Every Month for every active member in your organization!!

You MUST SEE IT FOR YOURSELF! BY PRIVATE INVITATION ONLY

Take Action Today! Get the complete FREE details and if you are not honestly amazed with what you discover.... Then you've lost nothing.

But! Let's face it... If You've been searching for something that really works - Then this is the last place you'll ever have to look. Your search is over!


$77,600.00, plus Compensation, plus Residuals

Until now, the world of eCommerce has been reserved only for those individuals who use checking accounts and credit cards.

We provide a way to manage money with the advantage and ease of technology to anyone in the world, regardless of socio-economic status which translates into a lucrative income opportunity for you and all involved right down to the end consumer

90% of the world can't obtain a credit card
40% of the U.S. does not have a credit card
41% of the U.S. working class does not have a checking account
75% of people who have credit cards are maxed out

The check cashing industry is an $8 billion per year industry. Over $40 billion was transferred from U.S. to other countries in 2000. This market is expected to grow 15% per year to $80 billion by 2005

What does this mean for you? ALL Worldwide Transactions will be commissionable to ALL brokers. This is just one part of the compensation plan.

End consumers will receive $8.00 for every referral! Just imagine what's in it for you as a broker. Very promising!

Immediately - Brokers are being accepted and being paid. Five levels to come in at to make this exceptional opportunity affordable for everyone.

( Brokers being accepted in USA, Canada, and Mexico) Expansion targeted for 3rd quarter of this year.

Hear more about this exciting program. Don't let this one get away.

Please don't make a decision about this fantastic product and opportunity before you get all the facts.

$99 will get you started on your way to making $77,600 in Fast Start Bonuses plus other compensation and great residuals.


One reader asks "Is the Virtual Income process ( www.replicate99.com/virtualincome/100.shtml ) which claims to be a gifting program just a pyramid scam?" You decide.


Revolution 9 http://thincnet.com/revolution9/mission.htm

www.secrets2success.com

Global Online Systems www.endlessmonies.com

www.my7diamonds.comOperates in east Asia such as India, Philippines, Indonesia, Hong Kong.

www.primebankltd.com


"World Cup Gold" is an evocash/egold based program where you receive your deposit plus 50% back in hours! 06/23/02

www.worldcupgold.net
www.open-24hours.com
Both registered to one Michael Myers
1065 La Avenida, Mountain View, CA 94043 US
650-693-7072. icon@hotmail.com


Seriously...Make Money in your Sleep!

Make serious money from home by working only one hour a day.

I know it may be hard for you to believe it is possible, but our partnership of experts has taught hundreds of everyday people like yourself how to achieve complete financial and time freedom. And, if you decide to join us, we can teach YOU too.

... evaluate the opportunity...

1) The Company 2) The Products 3) The Compensation Plan 4) The Training & Support

... a company that is quickly putting big money into everyone's pockets... www.CashCardAsap.com/ezmoney

The CashCardASAP program was developed by an alliance of successful entrepreneurs with over 80 years of combined business experience.

These entrepreneurs felt there had to be a way to help the "everyday" person achieve great financial success. So, they sat down to design a program that would do just that...enable an "everyday" person with limited financial and time resources to QUICKLY build a large income from home on a part- time basis.

Because this alliance of successful entrepreneurs has great financial resources, they were able to invest in cutting-edge, state-of-the-art technology for their program, which they named "CashCardASAP." ... *automatically* assists in building your organization.

... *anyone* who joins us can begin earning hundreds - even a couple of thousand - dollars a day within a few short days!!

=> This is NOT a pie-in-the-sky promise...this is PROVEN fact. The people who join us AND follow our proven system, DO quickly build their income to hundreds of dollars a day within 2-4 weeks. And, their income continues to grow as they continue with our program.

My friend, if you are serious about making a change in your life for the better, then you need to carefully review each section of the above website. The sooner you join us, the sooner YOU start earning serious money from home!

To your success,

No Pressure Associates 1-732-750-0954 rg.lboc@verizon.net 06/30/02


For info on Prepaid Legal Services visit MLMsurvivor


One pyramid gifting scheme justifies and legitimizes it's operation with the following pearls.

Gifting is a private invitation only activity. It is “the way it is conducted”that makes gifting legal. There are no products or services to sell. Gifting is a process that is carried on daily throughout the world of one person contributing to another... time, energy, materials, and finances.

Everyone is entitled to give freely (what else is a charity?). Both American and Canadian citizens have the Constitutional right to gift property, cash and other assets.

If instead of calling this a ‘gift’ it was termed an ‘investment’ then people could lose their money. There can be no “investment”and there are certainly no guarantees.

Never confuse the pyramid structure with legality! This is a private activity offered only through an exclusive invitation.

In gifting we must be careful not to infer that an invitee will benefit the way that others already have. The invitee must be told that there are no guarantees and that this is not an investment.


Infinite Wait for Compensation

Infinity Payline is a waste of time and money. I have spent hours promoting that site and I think it all went down the toilet.

I have made a few sales but never got a dime. After sending about 10 email messages, Jim Majka (Infinity owner I presume) finally answered. After reviewing the facts I presented, he admitted that I have commissions coming but that was almost a month ago and still nothing. It seems a though he has fallen off of the earth.

I paid $59 for membership ( which gives you a web address to promote ), http://infinitypayline.com/agents6/philjeffery.htm probably $200 on promo's and may hours on the computer sending emails, FFA ads, search engine submittals and even purchased hits. All for nothing.

I have gotten a few emails from other Infinity people advertising their site and found they are having the same trouble.

I hate getting ripped off. I think it is awful that these slime balls are kicking back in their homes sucking on the suds and laughing at us; probably bragging to their fellow scumbags. Basically, they steal on the internet because it is faceless and nobody really knows who they are.

Phil Jeffery 08/09/02


A new and unique Network Marketing (MLM) Programwill be launched on Nov 1, 2002. This revolutionary new program has been designed for profit by a MLM Professional, (not the company) and is backed by a Solid, Experienced (8 years old), Better Business Bureau Member, Debt Free company.

Special Opportunity

They are currently accepting Applications for Pre-Launch Only. The Pre-Launch Members will form the "core base" of the Program. This is truly a unique opportunity to virtually Guarantee YOUR SUCCESS in Network Marketing by STARTING AT THE TOP!

Real Cash. Real Fast

Pre-Launch Member Positions will be at the very top of this revolutionary Infinite Wide 3X3 Forced Matrix Pay Plan that also pays Infinitely Deep. After Pre-Launch Ends, all new member positions (everyone else) will be placed under Pre-Launch Positions in the Global Matrix. This creates as close to a SURE THING as you will ever find in Network Marketing. If you are Serious about making money THIS IS IT!

The Program is inexpensive ($60 to start) and the products are real and needed by everyone who wants to earn more money. Training will be provided and Success is Guaranteed. This Automated System and Breakthrough Pay Plan have solved the problems associated with other MLM Programs.

You have received Early Notification. There is a Short Window of Opportunity for you to get in Before Everyone Else. Those Who Join Tomorrow will be Placed Under Those Who Join Today! Don't Miss this Opportunity. For More information go to the Following link: www.go2prosperity.com/


Exposing the truth about the ACN MLM program.


Federal Trade Commission v. NexGen3000.Com Inc., et al
The Federal Trade Commission announced the filing of a complaint against these defendants alleging that the Internet-based business opportunity they sold was an illegal pyramid scheme and that they sold it making the representation that participants were likely to receive substantial income. The FTC seeks consumer redress and to bar the defendants from engaging in future pyramid operations, making misleading earnings claims, and providing others with the means to make deceptive claims.


Internet Pyramid Scheme Articles


 

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