Are you all aware of this pyramid scheme?

[JennifersLost]

There's a new brand of pyramid scheme going around.

 

It's called Women's Circle or Women's Garden Circle or other names.

 

Only women can "join". Basically, you get invited to cough up $5,000, which you give to the woman above you (who has recruited 7 other women to do the same). When that woman gets her $40,000, then it's your turn to recruit 8 women to pay $5,000 to you.

 

Every week you get on a conference call with all the other women who have joined and listen to an inspirational message - all about empowering women.

 

I found out because a good friend of mine was approached and she called me to find out what I thought. I did a little research; police have busted at least one of these circles in the North Bay area of California.

 

I'm just wondering if anyone here has heard of this.

 

Boy - you'd think after the whole Madoff thing people would figure it out; what kills me is the way the people who started this one are preying on women and the idea of empowering women.

 

Yeah - empowering women to steal from each other, basically. Sheesh.

[LaxMom]

Wow. That's really offensive, isn't it? I mean, the "product" in this case is simply connection to other people and self-esteem? How desperate.

 

ETA: The only "women's circle" I'm aware of is the one at the UU church. I don't think the ladies are paying to get in. ;)

[Sasharowan]

Haven't heard of this one, but we did get a check in the mail from Capitol One in Canada. It said we won a sweepstakes. The envelope had our address and a Canadian stamp on it. The postage stamp that the post office is supposed to put on it was a blurred line. The accompanying letter said to deposit the check, take out a money order of half the amount and send it to them for taxes. I googled the name and address and all I found for it was scam notices. We shredded the check.

[kah]

Haven't heard of that one, but there was something like that around here- maybe 15 years ago or so. I think it went by "Circle of Friends" and was billed as an investment group. Same idea.

 

When it was broken up, it was pretty big news- I think there were some well-known local people in it. We knew of a couple who'd been invited to one of the presentations but hadn't chipped in- they were still pretty worried as it was coming out, but since they hadn't hosted or participated, they came out OK (legally as well as financially.)

[JennifersLost]

Wow!

 

So it isn't new at all; just a new "twist" with the women part. I'll tell my friend.

[PineFarmMom]

No, this isn't new. I had heard of this about 10 years ago. Crazy is what it is! There has to be someone at the bottom of that pyramid, and it would really stink to lose that amount of $$. It would also stink to have taken from someone like that! :( People can be so...blind!

[Tap]

Yep, old scam, new twist.

 

In Oregon, there were different buy in levels, and different rewards. We know someone who did it and got paid. They were trying to recruit dh, when it went public. We weren't interested, but it was unnerving knowing that our name was on someones 'call' list.

[Mama Bear]

So incredibly illegal. Oprah highlighted this several years ago (back when I was watching, heh), with DAs who were cracking down. Not long after that, a friend invited me to join one. I consulted my husband and he said no way. I was glad to have his opinion to use when turning down my friend. ;)

 

Ick.

[Starr]

This is like a flash back. I remember these from 30 years ago. :(

[Samiam]

I participate in this about 8 years ago. Dumb, I know. It was going on in upstate NY, where DH was from and MIL still lived there. Not sure how it got there, but lots of women in the area were doing it, so everyone knew everyone, and early on, some women WERE getting paid. Problem was, at a certain point, they ran out of people in the area (small rural area). That's how I became involved, because one of DH's old friend's wife was interested in me participating (we were casual friends, via email at that point since we live in SC then). I hemmed and hawed about participating, and then the leader of that group GAVE me a membership. That's right, gifted me a "line", so I was now in line to move up in the program. It dawned on me after that fact it was because I was in another state, so I was a lifeline to get the group "out" of the rut they were in, running out of people, and opening up a whole new door of people for them, so they thought. Unfortunately, I am not much of a saleswoman, so I didn't really spread the word to my people in South Carolina.

 

The whole thing crashed and burned a few months later. MIL was out of her money, as were many other people who had joined at the tail end.

[Ruby]

Pyramids are definately illegal. Amway and others went through this back in the 70's. Amway went to court over what is or isn't a pyramid business. If something seems shady check out these rules for operation that a business must comply with. You must move goods or services . http://www.mlmlegal.com/landmark.html