Attorney General's Office Warns Consumers to Avoid Unlawful Pyramid Scams.OLYMPIA, Wash.--(BUSINESS WIRE)--July 23, 1999-- Attorney General Christine Gregoire Christine O'Grady "Chris" Gregoire (born March 24, 1947) is the Democratic governor of the U.S. state of Washington. Gregoire's election to the office in 2004 was notable for her historically slim margin of victory over Republican Dino Rossi, who had appeared to defeat Gregoire on today warned Washington consumers to beware be·ware v. be·wared, be·war·ing, be·wares v.tr. To be on guard against; be cautious of: "Beware the ides of March" Shakespeare. v. of "pyramid pyramid, structure pyramid. The true pyramid exists only in Egypt, though the term has also been applied to similar structures in other countries. Egyptian pyramids are square in plan and their triangular sides, which directly face the points of the " schemes that promise participants they will get rich quick. In the last week or so the AG's Office has been flooded with calls from consumers inquiring inquiring, v to draw information from a client—whether by verbal questioning or physical examination—to assess the person's state of health. about solicitations for programs that require an initial investment or gift and promise that the more people they bring into the program, the more money they will receive. These gifting programs are operating under various names and guises. These include, but are not limited to, programs using meal, auto racing and airline formats, and may be circulated among friends, religious or social groups, or family members. "In the end there are always more losers than winners in pyramid schemes Pyramid Scheme An illegal investment scam based on a hierarchical setup that relies on new recruits' funding as the source of money, or so-called returns, to be provided to those earlier investors/recruits above them in the pyramid. such as these," said Gregoire. "These schemes eventually collapse and many of the people who contributed to them are going to lose their money." Gregoire reminds consumers that the Attorney General's Office does not endorse or approve any venture, including the pyramid schemes that are so prevalent at the moment. "Despite what is being said, our office has not written letters, given okays through our Consumer Resource Centers, attended any meetings of these groups, or published a flyer that in any way validates these programs," said Gregoire. "It is a violation of state law for any pyramid operation to claim or imply the program has the approval of the Attorney General's Office." Consumers are reportedly expected to "freely give, without consideration" up to $2,000 in $100 or $50 bills and to recruit others to join them. Participants are required to state this is strictly a gift and they expect nothing in return. In fact, people are led to believe they will receive $12,000 from each group they join. Consumers who are approached should ask themselves three questions before proceeding: 1) Do I have to make an "investment" or give money to get the right to recruit others into the program? 2) When I recruit another person into the program, will I receive what the law calls "consideration" as a result? That usually means money. 3) Will the people I have recruited have to make an "investment" to get the right to recruit and receive "consideration" for getting other new people to join? If in doubt, consumers should consult an attorney. Anyone participating in an illegal pyramid is violating the state Chain Distributor Scheme law and is subject to penalties of up to a $2,000 fine, plus restitution In the context of Criminal Law, state programs under which an offender is required, as a condition of his or her sentence, to repay money or donate services to the victim or society; with respect to maritime law, the restoration of articles lost by jettison, done when the to any injured in·jure tr.v. in·jured, in·jur·ing, in·jures 1. To cause physical harm to; hurt. 2. To cause damage to; impair. 3. consumers, and charges for court and attorney fees. Anyone wanting more information can call the Consumer Resource Centers at 800/551-3646 to request a brochure on "Illegal Pyramid Schemes" or can download To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. the information from the Attorney General's web site at www.wa.gov/ago/consumer and clicking on "More Consumer Information". |
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