HOME OF STOPPING ILLEGAL PYRAMID SCHEME GIFTING SCAMS USING THAT TAKE PEOPLE AWAY FROM YOU AND GET THEM IN JAIL
ELITE ACTIVITY GIFTING RESURRECTED
7 May 2009 -These sorry doomed to Hell scumbags have found a new target. Illegal workers in the U.S. primarily Mexican nationals! Why? Because these hard working good folks won’t or can’t go to an Attorney General or the Feds when they get ripped off… Please pass the word via the Hispanic community (habla espanol?) that these scumbags that say God told them this was legal are the WORST SCUMBAGS on the face of the earth! This is the worlds worst ripoff Gifting program because it uses God's name and religion to steal! Please give this to your local Hispanic newspaper and any other source that can get the word out.
2009 update: LOOK FOR ABSENCE OF THESE WORDS IN PRINT
BUT THEY WILL BE USED ON THE PHONE TO SUCKER YOU IN!
AN ADVISORY PUT OUT TO "GIFTERS" FROM A LAWYER, NOW IN JAIL! Re: Elite Activity Gifting Scheme - was and the worst of scumbag pyramid schemes preying on Churches and Church Members! This crooked PYRAMID SCHEME lawyer told the crooks to never TO PUT IN PRINT: Investment, Took In, Paid out, Paid Earnings, Paid off, Getting Paid, Make, Play the panel, Sponsor, Profits, Play the house, Recruit, Dividends, Guarantee, Sign-up, Player, Assured Buy, Buy-in, Down-line, Sure bet, Purchase, Up-line, Earn, Payout, Return, Multiply your money,Guarantee, Net, Pay Gift, Gifter, I gave, Give, Helping others, Activity, Right to give, Senior, I have received, Receive, Junior, Participant, I have gifted, Giving, Family, Freshmen, Nice people, Sophomore, Participation, Register your gift, Giving, Golden Rule, Associates, Panel, Invited by, Fellow man, Help your Church, Money for Church, Community, Constitutional Rights, Kindness, Free association, Sharing, Caring, Invitation, Gifting is Legal, Legal Gifting, IRS approves Gifting, Gifting Completely legal ! Ed Note: So that tells us you should be on the "look out" for the words Above WHEN YOU ARE ON THE PHONE... that are used by all gifting clubs that are pyramid schemes!
THE INTERNAL REVENUE SERVICE ALLOWS GIFTING
BUT ONLY IF YOU EXPECT NOTHING IN RETURN FOR GIVING
Scammers quote Tax Code Title 26, Sections 2501-2504 and 2511, the IRS says that you may give $12,000 per person to as many individuals as you choose during the course of a calendar year (or $24,000 per married couple), and that these gifts are non-taxable. The IRS makes it quite clear, however, that in order to qualify under Title 26, your gifts must be given with absolutely no expectation of receiving anything in return. The mark of a pyramid scam is flashing around examples of big money earned or to be gotten.
Any cash gifting program which invokes Title 26 as proof of its legality, however, is basically lying to you as to how the IRS views their operation. Here’s what IRS agent Connie Lorz, President of the California Society of Enrolled Agents from 2002 to 2003, says on the subject, Some of these ‘gifting’ organizations claim the money is tax-free, but the IRS considers all income derived from them to be reportable income. Of course, for most of those who get involved in these gifting parties, it’s a moot point, as they’re never going to see any profit or even get their original stake back. Those individuals who got involved in the scam early and have their piece of dessert are subject to tax evasion charges if they haven’t declared their gains.
GIFTING ILLEGAL PYRAMID SCHEMES GROW DURING A RECESSION
YES THE FEDERAL TRADE COMISSION
SAYS GIFTING IS ILLEGAL SCHEME - SCAM
Some people just can't stay away from Pyramid Scheme "Gifting." They have been bamboozled, brainwashed and scammed into thinking it is legal. It is not! Here are a few of many FTC slams on these pyramids. Pass these resources and information along to friends that may be getting into this illegal gifiting activity.
FTC HITS ON ILLEGAL GIFTING SCHEMES AND SCAMS
FTC SIMILIAR ILLEGAL GIFTING PYRAMID SCHEMES
Federal Injunction against gifters
Federal Freeze by FTC With an Injunction Freezing Gifting Pyramid Scheme - Scam Money
MORE INFORMATION RESOURCES
STATE ATTORNEY GENERALS ATTACK PAST PURE GIFTING PYRAMID SCHEMES ILLEGAL CRIMINAL ACTIVITY DURING A RECESSION!
GIFTING -- WOMEN HELPING WOMEN RAIDED!
Maine, Wisconsin, To California Pyramid Schemes!
CALIFORNIA BOTH LOCAL AND STATE LAW ENFORMENT HIT RECESSION GENERATED PYRAMDS
'Gifting' Parties Probe Brings Search Warrants For Illegal Pyramid Scheme - Scams:
September 2002 - Investigators raided six homes in Placer and Sacremento counties where pyramid gifting programs were ran, announcing Tuesday that they will seek to arrest several promoters of a "gifting" circuit marketing itself as "Women Helping Women." In addition, Sacramento County Sheriff's Lt. Tom McMahon said authorities are probing whether a candidate for district attorney in El Dorado County improperly promoted illegal conduct by advising women at gifting parties -- including one in ... Sacramento.
Law Enforcement Targets 'Women Helping Women' Promoters OF ILLEGAL PYRAMIDS:
September LATE 2002 - 2003 -Authorities arrested women promoting and partipating in pyramid schemes - served search warrants on six homes in Sacramento and Placer counties, announcing today that they will seek to arrest several promoters of a "gifting" circuit marketing itself as "Women Helping Women." The warrants HIT PROMOTERS AND PARTICIPANTS OF gifting parties in Sacramento County, targeting participants from the county and neighboring counties. These women pled guilty despite the fact that many of the individual cash gifting groups within the organization insisted that all their members sign both “non-solicitation” and “gifting statements” saying that they recognized Women Helping Women as a private, voluntary gifting activity and would be relinquishing all legal rights to their gifts (presumably so they couldn’t later sue to have them returned). The illegal gifting statements were their declarations that they had been told not to expect any kind of return in exchange for their gifts, and that they were fully informed adults who had not been misled about anything. They are worthless! Rather than go to prison, all pled guilty got nailed with a significant amount of community service and fines, in most cases up to $150,000.
Idaho Gets Mean Rodeo Gifting Club
Back in 2000 -Before the "Rodeo Club Idaho Attorney General Michel Butts stated: Idaho law prohibits pyramid schemes, classifying them as felonies. Neither providing money to needy recipients, nor disclosing the potential risk of losing one’s money, nor ‘gifting’ the money to avoid tax consequences absolves citizens of their obligation to comply with Idaho’s Pyramid Statute. Participants and promoters should be aware that Idaho law provides for both civil and criminal penalties for conducting an illegal pyramid. Of course after the Rodeo Club pyramid scam the State Of Idaho has several cases as legal precendent law on gifiting and pyramid scheme activities.
Iowa Uses An Arsenal Againts Gifting Pyramid Schemes
Iowa AG- Attorney General for Iowa lists state laws to go after people in gifting pyramids:
Pyramid Laws Securites laws Theft laws Fraud laws
Plus a barn door they keep handy!
Kentucky Throws Down On Elite Activity
In 2004 - Kentucky Attorney General George Stumbo announced that an ongoing investigation of a gifting program called Elite Activity revealed that it met all the elements necessary to prove an illegal pyramid, although the program’s promoters put our BS that it was a legitimate gifting club under IRS tax laws. Elite Activity was also shut down in Mississippi, Tennessee, Arkansas, South Dakota, and in Texas, where Elite Activity’s founder, Harry Dockstader, was sentenced to two years in prison plus fines.
Maine Nails Women's Gifting Pyramid Groups
April 30, 2002 -- Attorney General Steven Rowe announced that his office has taken action against the pyramid scheme known as A Woman's Project. The suit was filed in Superior Court in Kennebec County and names 31 defendants who have refused to return the $5,000 they solicited from new recruits to the pyramid scheme. "Numerous women, often in great need of money, were attracted by an illusory promise that they could quickly obtain $40,000," said Attorney General Rowe. "But A Woman's Project is like all other pyramids, and it is doomed to fail." A Woman's Project uses a dinner party analogy to explain to recruits how its fund-raising scheme works. Each new recruit typically gives $5,000 and is then placed at the "Appetizer" level of the "Dinner Table." When eight new recruits have been persuaded to join A Woman's Project, they each give $5,000 to a participant who has reached the "Dessert" level, the highest position at the "Dinner Table." As the new recruits work their way up the hierarchy, they move from "Appetizer" to "Soup and Salad" to "Entrée" and, finally, "Dessert." Recruits are led to believe that the pyramid can continue ad infinitum, even though mathematically it is certain to fail. See the attached description of A Woman's Project pyramid. There is a men's scheme called NASCAR. A federal court previously dismissed a case filed by A Woman's Project organizers against the Attorney General and Maine's eight District Attorneys alleging that the prosecutors' public warnings against participating in illegal pyramids were chilling participation in A Woman's Project. The court ruled that the prosecutors were well within their power to warn the public about suspected illegal scams.
Back in 1998 In the case of State v. Irons, 574 N.W.2d 144 , the Nebraska Supreme Court held that promoting a cash gifting program qualified as selling investment contracts under the state’s securities laws and upheld the conviction and imprisonment of Jack G. Irons, who ran a cash gifting club called the Friends Network. The Court stated that: “the factors that define an investment contract are whether there is (1) an investment (2) in a common enterprise (3) with a reasonable expectation of profits (4) to be derived from the entrepreneurial or managerial efforts of others.” The Friends Network was typical of hundreds of other cash gifting clubs, with each member participant having to recruit others to join the pyramid so that he or she could progress toward the point of “reward,” at which time the pyramid would be split in two and the participant could either leave or start over at the bottom. Each member was required to bring in at least one recruit, and was pressured to bring in more.
Nebraska Gave This Gifting Pyramid a Double Whammy - the Friends Network was closed because it violated Nebraska’s securities laws, it was also violating Nebraska’s law against pyramid schemes: “A chain distributor scheme also known as pyramid sales shall mean a sales device whereby a person, upon a condition that he or she make an investment, is granted a license or right to recruit for profit one or more additional persons who also are granted such license or right upon condition of making an investment and may further perpetuate the chain of persons who are granted such license or right upon such condition… “
Law case setting precedent in New York was Pacurib v. Villacruz, the Civil Court of New York City ruled that not only were the founders of a cash gifting pyramid program guilty of fraud; the victims and participants of such programs had the right to sue those most responsible for promoting the programs.
WISCONSIN ATTACKS GIFTING DURING LAST RECESSION
"It's the consumer fraud of the decade," said Bill Oemichen, the former head of the consumer protection division in Wisconsin. Nearly 400 people in 61 jurisdictions are facing prosecution this winter, Wisconsin officials said. Up to 50 of the people targeted by prosecutors collected and kept more than $100,000 each. More than 2,800 people in Wisconsin have avoided criminal charges by paying back thousands of dollars apiece. "We've seen pyramid schemes before but nothing this extensive and widespread," Oemichen said.
In the enterprises preachers have enticed parishioners, bosses drafted their workers, bartenders lobbied their patrons, and parents and children recruited each other. Failed gifting clubs have resulted in criminal charges against operators and triggered a raft of lawsuits between former friends. Family members have turned in one another, neighbors have snitched on neighbors, and even a bride and a bridesmaid sued each other.
The GIFTING CLUBS have used a variety of names, including Women Empowering Women, Family Ties Gifting Club and Le Club Prive. Some operate under Christian themes. Others claim to promote self-esteem. A few revolve around dinner parties where cash is tucked away in napkins or wedged into dessert settings. The usual pitch: bolster your friends and family and generate some bucks too.
MORE GIFTING PYRAMID SCHEME REPORTS ON WATCHDOG
More Pyramid Scheme Gifting Pages:
TAGS: GIFTING ILLEGAL PYRAMID SCHEMES, SCAMS, CRIMINAL GIFTING, WOMEN HELPING WOMEN GIFTING SCAMS